When is entry deterrence the wiser strategy for a firm?
This paper examines the idea that if an incumbent firm deviates from short-term profit maximization behavior and deters the entry of a potential entrant at the expense of higher profit, then its own mid-/long-term profit maximization is achieved. The paper confirms the importance of the entry-deterrence behavior of the incumbent firm by using numerical examples of learning by doing.
Volume (Year): 42 (2005)
Issue (Month): 2 (December)
|Contact details of provider:|| Postal: |
Web page: http://www.econ.upd.edu.ph/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:75-89. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reuben T. Campos)
If references are entirely missing, you can add them using this form.