Capital, Commitment, and Entry Equilibrium
AbstractA primary concern of recent oligopoly literature has been the use of product-specific capital to impose asymmetric market solutions, including the deterrence of entry. This article explores the surprisingly neglected topic of the correspondence between the nature of product-specific capital (PSC) and the properties of entry equilibrium. The nature of PSC determines the type of entry with which firms must be concerned (predatory entry, where the entrant replaces an existing firm, or augmenting entry, where the entrant does not), the instruments available to effect asymmetry, the ability to impose asymmetric solutions, and their profitability.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 12 (1981)
Issue (Month): 2 (Autumn)
Contact details of provider:
Web page: http://www.rje.org
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Michael Waldman, 1983. "Limited Collusion and Entry Deterence," UCLA Economics Working Papers 306, UCLA Department of Economics.
- Fershtman,C. & de Zeeuw,A., 1995.
"Tradeable Emission Permits in Oligopoly,"
45-95, Tel Aviv - the Sackler Institute of Economic Studies.
- Michael Waldman, 1985.
"Noncooperative Entry Deterrence, Uncertainty, and the Free Rider Problem,"
UCLA Economics Working Papers
364, UCLA Department of Economics.
- Waldman, Michael, 1987. "Noncooperative Entry Deterrence, Uncertainty, and the Free Rider Problem," Review of Economic Studies, Wiley Blackwell, vol. 54(2), pages 301-10, April.
- Davidson, Carl & Deneckere, Raymond J, 1990.
"Excess Capacity and Collusion,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 521-41, August.
- Shaanan, Joseph, 1997. "Idle sunk cost capacity, entry, and profitability: An empirical study," Journal of Economics and Business, Elsevier, vol. 49(3), pages 267-283.
- Fershtman, C. & Zeeuw, A.J. de, 1991.
"Capital accumulation and entry deterrence: A clarifying note,"
1991-41, Tilburg University, Center for Economic Research.
- Fershtman, C. & De Zeeuw, A., 1991. "Capital Accumulation and Entry Deterrence: A Clariying Note," Papers 9141, Tilburg - Center for Economic Research.
- Louri, H. & Anagnostaki, V., 1995. "Entry and exit from Greek manufacturing industry: a test of the symmetry hypothesis," MPRA Paper 40575, University Library of Munich, Germany.
- Arping, Stefan & Diaw, Khaled M., 2008. "Sunk costs, entry deterrence, and financial constraints," International Journal of Industrial Organization, Elsevier, vol. 26(2), pages 490-501, March.
- Ravi Kumar, K. & Hadjinicola, George C., 1996. "Resource allocation to defensive marketing and manufacturing strategies," European Journal of Operational Research, Elsevier, vol. 94(3), pages 453-466, November.
- Miguel Flores, 2011. "24/7," Discussion Papers in Economics 11/51, Department of Economics, University of Leicester.
- Boyer, Marcel & Lasserre, Pierre & Mariotti, Thomas & Moreaux, Michel, 2004. "Preemption and rent dissipation under price competition," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 309-328, March.
- Read, Colin, 1997. "Development Effort in Speculative Real Estate Competitions," Journal of Housing Economics, Elsevier, vol. 6(1), pages 1-15, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.