Dai, Min; Jiang, Zhaoli; Wang, Neng - National Bureau of Economic Research - 2022
from early entrants to followers. We develop a tractable stochastic duopoly entry game with a second-mover advantage. We … entry opposite to the predictions that competition causes firms to equalize rents (Fudenberg and Tirole, 1985) by exercising … their entry options too soon (Grenadier, 1996). We obtain closed-form value functions and entry strategies for both mixed …