Oertel, Christian; Schmutzler, Armin - 2021
We analyze entry of a firm with a new and differentiated product into a market with two properties: An existing … consumers with the degree of taste heterogeneity leads to non-monotone effects of both parameters on entry. In particular, a … higher captive share can support entry when heterogeneity is low but not when it is high, and higher taste heterogeneity (i …