LAHMANDI-AYED, RIM - In: International Game Theory Review (IGTR) 08 (2006) 04, pp. 701-713
In the case of natural duopoly, we suggest a finitely repeated game between two incumbent firms and a potential entrant that limits the incumbent firms' power and compels them to approach economic efficiency. We prove that such a game admits a perfect subgame equilibrium along which the...