Jain, Neelam; Jeitschko, Thomas; Mirman, Leonard - In: Review of Economic Design 9 (2005) 3, pp. 203-225
We study how financial intermediation affects market entry when an incumbent monopolist enters into non-public, short-term contracts for outside funds. Financial intermediation serves as a commitment device to avoid costly signalling, but at the same time leads to strategic experimentation by...