This note investigates the possibility of profit raising entry in network industries where firms follow Corporate … conventional wisdom and shows another channel the preceding literature has so far not explored for the possibility of a profit …

choices. Consumers differ in their preferences and profitability (e.g., due to heterogeneous risk aversion and loss … substitution of quality for price is sharper for profit than for utility. In particular, profit also vanishes if utility equals the … sum of (negative) profit, and a surplus (eg, due to risk aversion). We pro- vide examples of economies where there exists …