Consider a setting where threatened rather than actual import competition restrains a domestic oligopoly's prices. I show that not modeling the entry threat may underestimate the true degree of market power, as incumbents' blunted price responses to demand shocks resemble perfectly-competitive...

Brazil's established soft-drink firms recently lost ground to multiple low-price entrants, with small-scale operations and minimal advertising. While incumbents attributed such undercutting to entrants' lower costs from non-compliance with the law, "generics" counterargued that incumbents' high...