Fumagalli, Chiara; Motta, Massimo - C.E.P.R. Discussion Papers - 2002
Rasmusen et al. (1991) and Segal and Whinston (2000) show that an incumbent monopolist might exclude entry of a more efficient competitor, by exploiting externalities among buyers. We show that their results hold only when downstream competition among buyers does not exist or is weak enough....