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Who Deters Entry? Evidence on the Use of Strategic Entry Deterrents

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Author Info
Bunch, David S
Smiley, Robert
Abstract

To deter entry into new product markets, firms most often use the creation of product loyalty through advertising and the preemption of markets through numerous and broad patents. Filling all product niches, making the results for highly profitable division, and advertising are used most frequently for existing products. For newly developed products, strategic entry deterrents are used more often when markets are concentrated, populated by large firms, and research intensive. Strategic entry deterrents for existing products are used in concentrated, research intensive markets, but firm size has no effect. Firms develop strategies to deter entry less when other barriers exist. Copyright 1992 by MIT Press.

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Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 74 (1992)
Issue (Month): 3 (August)
Pages: 509-21
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Handle: RePEc:tpr:restat:v:74:y:1992:i:3:p:509-21

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  1. Viktoria Kocsis & Ruslan Lukach & Bert Minne & Victoria Shestalova & Nick Zubanov & Henry van der Wiel, 2009. "Relation entry, exit and productivity," CPB Documents 180, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  2. Ganslandt, Mattias, 2001. "Strategic Investment and Market Integration," Working Paper Series 560, Research Institute of Industrial Economics. [Downloadable!]
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