Fudenberg, Drew; Tirole, Jean - In: RAND Journal of Economics 17 (1986) 3, pp. 366-376
We propose a new theory of predation based on "signal-jamming." In our model the predator's characteristics are common knowledge, while the entrant is uncertain of his own future profitability. The entrant uses his current profit to decide whether to remain in the market, and the predator preys...