Advertising and Entry Deterrence: How the Size of the Market Matters
AbstractWe analyze the relationship between market size and entry when an incumbent and potentially an entrant compete to gain market share and advertising is the only strategic variable. Entry occurs when the relative effectiveness of incumbent's advertising is smaller than a threshold level that depends on the size of the market. This threshold level is monotonically and positively related to market size. Consequently, equilibrium with entry is more likely the greater is the size of the market.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22620.
Date of creation: Feb 2007
Date of revision: Nov 2007
Publication status: Published in International Journal of Business and Economics 3.6(2007): pp. 199-206
advertising; entry; market size;
Other versions of this item:
- Khaled Bennour, 2007. "Advertising and Entry Deterrence: How the Size of the Market Matters," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 6(3), pages 199-206, December.
- Bennour, Khaled, 2006. "Advertising and entry deterrence: how the size of the market matters," MPRA Paper 17233, University Library of Munich, Germany, revised 07 Feb 2007.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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