A note on credible spatial entry deterrence

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• 作者：Ishibashi ; Ikuo
• 关键词：D42 ; L12 ; Entry deterrence ; Product differentiation ; Endogenous timing
• 刊名：International Journal of Industrial Organization
• 出版年：2003
• 出版时间：February, 2003
• 年：2003
• 卷：21
• 期：2
• 页码：283-289
• 全文大小：52.2 K

文摘

This note revisits the question of spatial entry deterrence to investigate the credibility of pre-emption by crowding in a differentiated market. Judd [Rand J. Econ. 16 (1985) 153] argues that pre-emption by crowding is not a credible entry barrier because an incumbent monopolist has an ex post incentive to withdraw products in response to entry. We demonstrate that pre-emption by crowding may be a credible entry barrier if multiple potential entrants choose the timing of entry endogenously.