We model long-run price competition as a two-stage entry-capacity and pricing game among many potential entrants. Each solution of the game is found to reproduce a long-run competitive equilibrium provided the latter is characterized by a sufficiently large market. This result extends to the...

Before solving the capacity-pricing game for oligopoly, Boccard and Wauthy (2000) argue that, as under duopoly, at a mixed-strategy equilibrium of the pricing game the largest firm's payoff equals the Stackelberg follower profit. We point to a nontrivial mistake in their argument and see how...