Munoz-Garcia, Felix; Zaynutdinova, Gulnara - In: Journal of Industry, Competition and Trade 13 (2013) 4, pp. 563-597
This paper examines entry deterrence and signaling when an incumbent firm experiences capacity constraints. Our results … transmitted to the entrant. If, in contrast, both types of incumbent face similar expansion costs, subsidies that reduce expansion …, our results demonstrate that if subsidies are very generous entry patterns remain unaffected, suggesting a potential …