Jain, Neelam; Jeitschko, Thomas D.; Mirman, Leonard J. - Tinbergen Instituut - 2001
threat of entry; andthere are parameter values for which the bank makes more profits with the threat of entry thanwithout. … market decisions in the face of the threat of entry, in a dynamic model.The main results of the paper are: there exists a … separating equilibrium with no limit pricing; thelow-cost incumbent repays more to the bank in the first period, due to the …