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

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 …

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 the framework of symmetric Cournot oligopoly, this paper provides two minimal sets of assumptions on the demand and …

mass of varieties. We impose intuitive conditions on this function to guarantee the existence and uniqueness of a free-entry …