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Financial Intermediation and Entry-Deterrence: A survey

Author

Listed:
  • Leonard J. Mirman

    () (University of Virginia)

  • Thomas Jeitschko

    () (Texas A&M University)

  • Neelam Jain

    () (Rice University)

Abstract

In this paper, we summarize the findings of a series of our papers on the relationship between financial contracting and the game of entry-deterrence in a dynamic context.The incumbent has private information about its cost and enters into an agency relationship with a lender in each of the two periods. We examine the effect of this agency relationship on the probability of entry and limit pricing on the one hand and the effect of the game of entry-deterrence on the form of the financial contract on the other. The three papers make different assumptions about the uncertainty of demand and the informational structure.

Suggested Citation

  • Leonard J. Mirman & Thomas Jeitschko & Neelam Jain, 2001. "Financial Intermediation and Entry-Deterrence: A survey," Economics Bulletin, AccessEcon, vol. 12(1), pages 1-13.
  • Handle: RePEc:ebl:ecbull:eb-01l10001
    as

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    References listed on IDEAS

    as
    1. Leonard J. Mirman & Thomas D. Jeitschko & Egas Salgueiro, 2002. "The simple analytics of information and experimentation in dynamic agency," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 19(3), pages 549-570.
    2. Poitevin, Michel, 1990. "Strategic financial signalling," International Journal of Industrial Organization, Elsevier, vol. 8(4), pages 499-518, December.
    3. Bolton, Patrick & Scharfstein, David S, 1990. "A Theory of Predation Based on Agency Problems in Financial Contracting," American Economic Review, American Economic Association, vol. 80(1), pages 93-106, March.
    4. Neelam Jain & Thomas Jeitschko & Leonard Mirman, 2002. "Strategic Experimentation in Financial Intermediation with Threat of Entry," Annals of Operations Research, Springer, vol. 114(1), pages 203-227, August.
    5. Neelam Jain & Thomas D. Jeitschko & Leonard J. Mirman, 2003. "Financial intermediation and entry-deterrence," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(4), pages 793-815, November.
    6. Kovenock, Dan & Phillips, Gordon, 1995. "Capital Structure and Product-Market Rivalry: How Do We Reconcile Theory and Evidence?," American Economic Review, American Economic Association, vol. 85(2), pages 403-408, May.
    7. Phillips, Gordon M., 1995. "Increased debt and industry product markets An empirical analysis," Journal of Financial Economics, Elsevier, vol. 37(2), pages 189-238, February.
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    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L0 - Industrial Organization - - General

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