This paper investigates the decision problem of an incumbent firm confronted by both a weak and a strong entrant in a differentiated market. Suppose that the incumbent can deter entry of the weak firm, but cannot deter entry of the strong firm by itself. Then the incumbent may allow entry of the...

We use micro data to look at the firm-size wage differential in Italy. Given the remarkable importance of small firms in this country, this is a relevant issue.

We use micro data to look at the firm-size wage differential in Italy. Given the remarkable importance of small firms in this country, this is a relevant issue.

This paper investigates the decision problem of an incumbent firm confronted by both a weak and a strong entrant in a differentiated market. Suppose that the incumbent can deter entry of the weak firm, but cannot deter entry of the strong firm by itself. Then the incumbent may allow entry of the...