Perloff, Jeffrey M.; Suslow, Valerie Y.; Seguin, Paul J. - Institute of Business and Economic Research (IBER), … - 1995
When a new firm enters a market and starts selling a spatially-differentiated product, the prices of existing products may rise due to a better match between consumers and products. Entry may have three unusual effects. First, the new price is above the monopoly price if the two firms collude...
