6533b85bfe1ef96bd12bb61f

RESEARCH PRODUCT

ENDOGENOUS TIMING WITH FREE ENTRY

Antonio Tesoriere

subject

Entry preventionEntry timeCournot competitionSettore SECS-P/06 - Economia ApplicataMarket leadershipjel:L11Microeconomicsfree entry market leadership entry preventionFree entryjel:L13EconomicsStackelberg competitionmedicineFree entrymedicine.symptomEndogenous Timing Entry PreemptionIndustrial organization

description

A free entry model with linear costs is considered where firms first choose their entry time and then compete in the market according to the resulting timing decisions. Multiple equilibria arise allowing for infinitely many industry output configurations encompassing one limit-output dominant firm and the Cournot equilibrium with free entry as extreme cases. Sequential entry is never observed. Both Stackelberg and Cournot-like outcomes are sustainable as equilibria however. When the number of incumbents is given, entry is always prevented, and industry output is sometimes larger than the entry preventing level.

yearjournalcountryeditionlanguage
2006-01-01
http://hdl.handle.net/10447/10534