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Strategic Entry Deterrence: Recent Developments in the Economics of Industry

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  • Neven, Damien J

Abstract

This paper reviews the recent developments in the economics of industry with respect to strategic entry deterrence. Starting from Bain's (1956) classical analysis, a simple two-stage game between an incumbent firm and a potential entrant is used to present the general structure of the entry deterrence problem. Commitments, credible threat and sub-game perfection are illustrated in this context. The various strategic variables that an incumbent firm can use to bar entry are discussed. The issue of whether a group of incumbents can noncooperatively deter entry is taken up and some empirical evidence is reviewed. Copyright 1989 by Blackwell Publishers Ltd

Suggested Citation

  • Neven, Damien J, 1989. "Strategic Entry Deterrence: Recent Developments in the Economics of Industry," Journal of Economic Surveys, Wiley Blackwell, vol. 3(3), pages 213-233.
    • Handle: RePEc:bla:jecsur:v:3:y:1989:i:3:p:213-33
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    Cited by:

    1. Abdullahi O. Abdulkadri, 2014. "Impact Of Deregulation Of The Jamaica Mobile Phone Market On Calling Rates," American Journal of Economics and Business Administration, Science Publications, vol. 6(2), pages 81-88, August.
    2. Michael Kopel & Clemens Löffler, 2008. "Commitment, first-mover-, and second-mover advantage," Journal of Economics, Springer, vol. 94(2), pages 143-166, July.
    3. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, September.
    4. Dawid, Herbert & Kopel, Michael & Kort, Peter M., 2010. "Innovation threats and strategic responses in oligopoly markets," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 203-222, August.
    5. Panayiotis Agisilaou, 2013. "Collusion in Industrial Economics and Optimally Designed Leniency Programmes - A Survey," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2013-03, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    6. Tombak, Mihkel M., 1995. "Process technologies, learning and brand proliferation," European Journal of Operational Research, Elsevier, vol. 82(1), pages 26-38, April.
    7. Miguel Flores, 2011. "24/7," Discussion Papers in Economics 11/51, Division of Economics, School of Business, University of Leicester.
    8. Hattori, Keisuke & Yamada, Mai, 2020. "Welfare Implications of Sequential Entry with Heterogeneous Firms," MPRA Paper 103422, University Library of Munich, Germany.
    9. Kuchinke, Björn A. & Vidal, Miguel, 2016. "Exclusionary strategies and the rise of winner-takes-it-all markets on the Internet," Telecommunications Policy, Elsevier, vol. 40(6), pages 582-592.

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