Showalter, Dean - In: International Review of Economics & Finance 19 (2010) 4, pp. 539-554
Firms in oligopoly can use debt to commit to a strategic position that negatively affects rival firms and improves profitability. In this paper, I show that an incumbent firm can deter entry by using debt to commit to such a low price that an entrant's lender will not finance entry, even if the...