Brandts, Jordi; Giritligil, Ayça Ebru - In: Journal of Economic Behavior & Organization 68 (2008) 3-4, pp. 593-612
We study how markets adjust to the entry of new firms under different conditions. Two incumbents face entry by three other firms. When firms' costs are equal, entry always leads consumer surplus and profits to their equilibrium levels. When entrants are more efficient than incumbents, entry...