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We develop a dynamic entry model of multi-store oligopoly with heterogeneous markets, and estimate it using data on … hamburger chains in Canada (1970–2005). Because more lucrative markets attract more entry, firms appear to favor the pres- ence … and preemption is an important factor behind the evolution of market structure. …
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is characterized by preemption motives while the shakeout phase mimics a war of attrition. We show that dynamic strategic …
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standard oligopoly; above the higher threshold there is a unique equilibrium in which all firms disregard that impact as in …
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This chapter surveys empirical models of market structure. We pay particular attention to equilibrium models that interpret cross-sectional variation in the number of firms or firm turnover rates. We begin by discussing what economists can in principle learn from models with homogeneous...
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