duopoly/oligopoly profits, the incumbent(s) may want to signal its weakness to invite entry of weaker firms …Extending Milgrom and Roberts (1982) we present an infinite horizon entry model, where the incumbent(s) may use the … current price to signal its strength to deter entry. We show that, due to the importance of entrants' types on the post-entry …

This paper considers the effects of raising the cost of entry for a potential competitor on infinite-horizon Markov … an active younger rival. We prove that raising a second producer's sunk entry cost in an industry that supports at most …. Numerical experiments indicate that a barrier to entry's quantitative relevance depends on demand shocks' serial correlation. If …

This paper demonstrates that when an industry faces potential entry and this threat of entry constrains pre-entry …

default risk is unproven at the time they enter the market. We show that free entry competition in the credit rating business …

This paper examines whether there is a natural barrier to entry in the credit rating industry. We consider an in nite … incompetent CRA can dominate the market without being worried about entry of potentially more competent entrants and can explain …

distinguished player if he also can trade shares of the firm on a market. Arbitrage-free asset pricing theory suggests that the …