Fumagalli, Chiara; Motta, Massimo - C.E.P.R. Discussion Papers - 2001
Miscoordination of buyers might prevent entry in an industry with an incumbent and a more efficient potential entrant …. Buyers' power therefore favours entry by eliminating coordination problems. We also identify a mechanism which facilitates … entry: if the potential entrant could credibly offer to pay a penalty for unfulfilled orders, miscoordination would be …