Kamphorst, J.J.A.; Mendys-Kamphorst, E.; Westbrock, B. - School of Economics, Universiteit Utrecht - 2010
Abstract It is well-known in the IO literature that incumbent firms may want to deter entry by behaving as if they are efficient. In this paper we show that incumbents may sometimes prefer to encourage entry by mimicking the behaviour of a less efficient firm for the following reason. If the...