Entry-Deterrence in Stackelberg Perfect Equilibria
This paper examines entry deterrence in a duopoly where the postentry game is Stackelberg. It is argued that, in reality, firms can use a broader range of precommitments than is allowed for in the literature. This paper permits such precommitments and analyzes the perfect equilibria. It also allows for the fact that there may be fixed costs associated not only with entry, but with beginning production. Several interesting possibilities are explained, including the existence of excess capacity and the holding of inventories even in the absence of any uncertainty. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 31 (1990)
Issue (Month): 1 (February)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |