Colombo, Stefano - In: Economics: The Open-Access, Open-Assessment E-Journal 3 (2009) 2009-33, pp. 1-13
price discriminate while the low-quality entrant sets a uniform price. The incumbent may act as a predator, that is, it may … price below its marginal costs on a subset of consumers to induce the rival's exit. We show that the entrant may adopt an … show that when the incumbent may choose whether to price discriminate or not before the game starts, if the quality cost …