-called excess entry theorem relies critically on the assumption of completely inelastic demand. Our model is able to produce … price elasticity of demand is increasing in price is also provided. -- Demand elasticity ; spatial models ; excess entry …

-called excess entry theorem relies critically on the assumption of completely inelastic demand. Our model is able to produce … price elasticity of demand is increasing in price is also provided. -- Demand elasticity ; Spatial models ; Excess entry …

opportunities decrease profits and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income from …

to advertising decreases revenues and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income …

not "too" convex. As in the case of unit demand, the number of firms under free entry decreases in the fixed cost of entry … optimal level. Insufficient entry occurs when the fixed and transportation costs are high. -- Spatial Models ; Price …-Dependent Demand ; Horizontal Product Differentiation ; Demand Elasticity ; Excess Entry Theorem …

This paper revisits the optimal entry decision in a differentiated product market where customer demand is price …-sensitive and depends on a per-unit transport cost. We show that too few firms may enter for high entry cost and high transport cost …

This paper revisits the excess entry theorem in spatial models agrave; la Vickrey (1964) and Salop (1979) while … of firms that enter a market decreases with the degree of demand elasticity.We find that the excess entry theorem does … only hold when demand is sufficiently inelastic. Otherwise, there is insufficient entry. In the limiting case of unit …

-called excess entry theorem relies critically on the assumption of completely inelastic demand. Our model is able to produce …