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The effect of exit on entry deterrence strategies

✍ Scribed by Abraham L. Wickelgren

Book ID
116505662
Publisher
Elsevier Science
Year
2006
Tongue
English
Weight
135 KB
Volume
54
Category
Article
ISSN
0899-8256

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Models of entry deterrence typically require that incumbents possess a cost advantage as a prerequisite for deterring entry. Potential entrants possess a cost advantage over incumbents, however, if input costs fall over time. This paper models the behavior of an incumbent and a potential entrant whe