The theory of "Judo Economics" describes an optimal entry strategy for small firms. Using a capacity limitation, small firms force dominant market incumbents to accommodate. In this article, we study the power of Judo economics as an entry strategy in different market environments. We find...

We report on a two-person bargaining experiment, where both players are represented by groups of three persons each. Both groups negotiate on the division of a given amount. If they do not come to an agreement, they receive a guaranteed payoff which is higher for one group than for the other....