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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. Miguel Flores, 2011. "24/7," Discussion Papers in Economics 11/51, Department of Economics, University of Leicester.
    2. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107069978, May.
    3. Michael Kopel & Clemens Löffler, 2008. "Commitment, first-mover-, and second-mover advantage," Journal of Economics, Springer, vol. 94(2), pages 143-166, July.
    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. Tombak, Mihkel M., 1995. "Process technologies, learning and brand proliferation," European Journal of Operational Research, Elsevier, vol. 82(1), pages 26-38, April.

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