competitor. We show that this mechanism is welfare improving but it generates inefficient entry. That is a more efficient …

reduction as a way to induce entry accommodation: the entrant tends to rely exclusively on capacity limitation in a subgame …

An infinite-horizon, stochastic model of entry and exit with sunk costs and imperfect competition is constructed …. Simple examples provide insights into: (1) the relationship between sunk costs and industry concentration, (2) entry when … current profits are negative, and (3) the relationship between entry and the length of the product cycle. A subgame perfect …

In a model of horizontal product differentiation, we show that local monopolies may exist under free entry when capital … is perfectly mobile. In contrast both with the situation of restricted entry and with the zero-profit approach to free … entry outcomes of Salop (1979), the unit profit rate of incumbent monopolists is positive and bounded above in equilibrium …

final output. We investigate entry of new firms, when entry obtains by expanding the economy, as well as collusive … agreements between firms. We highlight the differentiated effects of entry corresponding to a constant or decreasing returns … technology. In particular, we show that, under decreasing returns, free entry in both markets does not entail the usual tendency …