Entry Threat in Duopoly

Peitz, Martin (September 1996) Entry Threat in Duopoly. Former Series > Working Paper Series > IHS Economics Series 37


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Abstract: An oligopolistic market with vertical product differentiation is parametrized in cost parameters. This allows me to study the impact of the technology of the firms (cost parameters) on market structure, conduct, and performance. Firms which differ only by the order of the sequential move to choose a quality use sophisticated entry deterring or entry accomodating strategies. I show that infinitesimal changes in the cost parameters can generate discontinuities in market profits. In particular, higher entry costs can lead to a more competitive outcome.;

Item Type: IHS Series
Keywords: 'Entry Deterrence' 'Vertical Product Differentiation' 'Sequential Quality Choice' 'Barriers of Entry'
Classification Codes (e.g. JEL): L13
Date Deposited: 26 Sep 2014 10:36
Last Modified: 26 Sep 2019 16:38
URI: https://irihs.ihs.ac.at/id/eprint/924

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