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Entry, Its Deterrence, and Its Accommodation: A Study of the U.S. Photographic Film Industry

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  • Vrinda Kadiyali

Abstract

This work, set in the "new empirical industrial organization" framework (Bresnahan, 1987), examines firm-level demand-based and cost-based explanations for entry and accommodation strategies in the U.S. photographic film industry. I first estimate preentry and postentry market structures. Then, using the estimated demand, cost, and market conduct parameters, I show how entry by Fuji Photo, or lack thereof by others, is a function of two market structures. I also show how market structure and conduct, and changes in them over the pre- and postentry periods, are, in turn, functions of entry, its deterrence, and it accommodation.

Suggested Citation

  • Vrinda Kadiyali, 1996. "Entry, Its Deterrence, and Its Accommodation: A Study of the U.S. Photographic Film Industry," RAND Journal of Economics, The RAND Corporation, vol. 27(3), pages 452-478, Autumn.
  • Handle: RePEc:rje:randje:v:27:y:1996:i:autumn:p:452-478
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    Cited by:

    1. K. Sudhir, 2001. "Competitive Pricing Behavior in the Auto Market: A Structural Analysis," Marketing Science, INFORMS, vol. 20(1), pages 42-60, January.
    2. K. Sudhir & Pradeep K. Chintagunta & Vrinda Kadiyali, 2005. "Time-Varying Competition," Marketing Science, INFORMS, vol. 24(1), pages 96-109, September.
    3. Kadiyali, Vrinda & Vilcassim, Naufel & Chintagunta, Pradeep, 1998. "Product line extensions and competitive market interactions: An empirical analysis," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 339-363, November.
    4. G√ľnter J. Hitsch, 2006. "An Empirical Model of Optimal Dynamic Product Launch and Exit Under Demand Uncertainty," Marketing Science, INFORMS, vol. 25(1), pages 25-50, 01-02.
    5. Jagmohan S. Raju & Abhik Roy, 2000. "Market Information and Firm Performance," Management Science, INFORMS, vol. 46(8), pages 1075-1084, August.
    6. Doraszelski, Ulrich & Draganska, Michaela & Clark, C. Robert, 2007. "Information or Persuasion? An Empirical Investigation of the Effect of Advertising on Brand Awareness and Perceived Quality using Panel Data," Research Papers 1971, Stanford University, Graduate School of Business.
    7. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, November.
    8. Pradeep K. Chintagunta, 2001. "Endogeneity and Heterogeneity in a Probit Demand Model: Estimation Using Aggregate Data," Marketing Science, INFORMS, pages 442-456.
    9. repec:bla:ecinqu:v:55:y:2017:i:1:p:319-338 is not listed on IDEAS
    10. K. Sudhir, 2001. "Structural Analysis of Manufacturer Pricing in the Presence of a Strategic Retailer," Marketing Science, INFORMS, pages 244-264.
    11. Till Dannewald & Lutz Hildebrandt, 2008. "A Brand Specific Investigation of International Cost Shock Threats on Price and Margin with a Manufacturer-Wholesaler-Retailer Model," SFB 649 Discussion Papers SFB649DP2008-070, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    12. Federico Ciliberto & Zhou Zhang, 2017. "Multiple Equilibria And Deterrence In Airline Markets," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 319-338, January.

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