Entry in a homogeneous Cournot-oligopoly is excessive if there is business stealing. This prediction assumes that … deter entry, but affect neither the optimal number of firms nor welfare directly. Therefore, entry becomes insufficient if … informational rents are large enough. In the context of a moral hazard model, we show that insufficient entry occurs if entry costs …

markets may become easier as market concentration falls, and that market entry may facilitate collusion. In particular, firms …