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We discuss the effects of AD-protection in a standard Dixit model of entry deterrence. In an AD-regime, the newcomer is constrained by a minimum-price rule in addition to existing irreversible entrance costs. For minimum prices which lie below the Stackelberg one, we find that AD-rules distort...
Persistent link: https://www.econbiz.de/10010277222
We discuss the effects of AD-protection in a standard Dixit model of entry deterrence. In an AD-regime, the newcomer is constrained by a minimum-price rule in addition to existing irreversible entrance costs. For minimum prices which lie below the Stackelberg one, we find that AD-rules distort...
Persistent link: https://www.econbiz.de/10001906698
Persistent link: https://www.econbiz.de/10003825923
Persistent link: https://www.econbiz.de/10013430665
Persistent link: https://www.econbiz.de/10013430699