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

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  • Bunch, David S
  • Smiley, Robert
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    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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    Bibliographic Info

    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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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Koski, Heli A. & Majumdar, Sumit K., 2002. "Paragons of virtue? Competitor entry and the strategies of incumbents in the U.S. local telecommunications industry," Information Economics and Policy, Elsevier, Elsevier, vol. 14(4), pages 453-480, December.
    2. Yamawaki, Hideki, 2002. "Price reactions to new competition: A study of US luxury car market, 1986-1997," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 20(1), pages 19-39, January.
    3. Viktoria Kocsis & Ruslan Lukach & Bert Minne & Victoria Shestalova & Nick Zubanov & Henry van der Wiel, 2009. "Relation entry, exit and productivity: an overview of recent theoretical and empirical literature," CPB Document, CPB Netherlands Bureau for Economic Policy Analysis 180, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Carree, M. A. & Thurik, A. R., 1999. "The carrying capacity and entry and exit flows in retailing," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 17(7), pages 985-1007, October.
    5. Kappes, Jan Willem & Merkert, Rico, 2013. "Barriers to entry into European aviation markets revisited: A review and analysis of managerial perceptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, Elsevier, vol. 57(C), pages 58-69.
    6. Ganslandt, Mattias, 2001. "Strategic Investment and Market Integration," Working Paper Series, Research Institute of Industrial Economics 560, Research Institute of Industrial Economics.
    7. Ioannis Asimakopoulos & Dionysis Lalountas & Costas Siriopoulos, 2008. "The determinants for the survival of firms in the Athens Exchange," Economic Bulletin, Bank of Greece, Economic Research Department, Bank of Greece, Economic Research Department, issue 31, pages 07-30, November.
    8. Lambrecht, Bart & Perraudin, William, 2003. "Real options and preemption under incomplete information," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 27(4), pages 619-643, February.
    9. Lutz, Clemens & Kemp, Ron & Dijkstra, S. Gerhard, 2007. "SME's perceptions regarding strategic and structural entry barriers," Research Report, University of Groningen, Research Institute SOM (Systems, Organisations and Management) 07009, University of Groningen, Research Institute SOM (Systems, Organisations and Management).

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