Extending Milgrom and Roberts (1982) we present an infinite horizon entry model, where the incumbent(s) may use the current price to signal its strength to deter entry. We show that, due to the importance of entrants' types on the post-entry duopoly/oligopoly pro?ts, the incumbent(s) may want to signal its weakness to invite entry of weaker firms
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: (82-2) 928-4948
Web page: http://econ.korea.ac.kr/~ri
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph E. Harrington Jr., 1987. "Oligopolistic Entry Deterrence under Incomplete Information," RAND Journal of Economics, The RAND Corporation, vol. 18(2), pages 211-231, Summer.
- Cho, In-Koo & Kreps, David M, 1987.
"Signaling Games and Stable Equilibria,"
The Quarterly Journal of Economics,
MIT Press, vol. 102(2), pages 179-221, May.
- Bagwell, Kyle & Riordan, Michael H, 1991.
"High and Declining Prices Signal Product Quality,"
American Economic Review,
American Economic Association, vol. 81(1), pages 224-39, March.
- Jeroen M. Swinkels, 1997.
"Education Signaling with Preemptive Offers,"
1175, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Bagwell, Kyle & Ramey, Garey, 1990. "Advertising and pricing to deter or accommodate entry when demand is unknown," International Journal of Industrial Organization, Elsevier, vol. 8(1), pages 93-113.
- Kaya, Ayça, 2009.
"Repeated signaling games,"
Games and Economic Behavior,
Elsevier, vol. 66(2), pages 841-854, July.
- Noldeke, Georg & van Damme, Eric, 1990.
"Signalling in a Dynamic Labour Market,"
Review of Economic Studies,
Wiley Blackwell, vol. 57(1), pages 1-23, January.
- Noldecke,Georg & van Damme,Eric, 1988. "Signalling in a dynamic labor market," Discussion Paper Serie A 148, University of Bonn, Germany.
- van Damme, E.E.C. & Nöldeke, G., 1990. "Signaling in a dynamic labor market," Other publications TiSEM b71cd444-f4c7-4282-bcc8-a, Tilburg University, School of Economics and Management.
- Byoung Heon Jun & In-Uck Park, 2005.
172782000000000041, UCLA Department of Economics.
- Kremer, Ilan & Skrzypacz, Andrzej, 2007. "Dynamic signaling and market breakdown," Journal of Economic Theory, Elsevier, vol. 133(1), pages 58-82, March.
- Paul Milgrom & John Roberts, 1998.
"Limit Pricing and Entry Under Incomplete Information: An Equilibrium Analysis,"
Levine's Working Paper Archive
245, David K. Levine.
- Milgrom, Paul & Roberts, John, 1982. "Limit Pricing and Entry under Incomplete Information: An Equilibrium Analysis," Econometrica, Econometric Society, vol. 50(2), pages 443-59, March.
- Harrington, Joseph E, Jr, 1986. "Limit Pricing When the Potential Entrant Is Uncertain of Its Cost Function [Limit Pricing and Entry under Incomplete Information: An Equilibrium Analysis]," Econometrica, Econometric Society, vol. 54(2), pages 429-37, March.
- Overgaard, Per Baltzer, 1994. "Equilibrium effects of potential entry when prices signal quality," European Economic Review, Elsevier, vol. 38(2), pages 367-383, February.
- Oz Shy, 1996. "Industrial Organization: Theory and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691795, June.
- Katharine E. Rockett, 1990. "Choosing the Competition and Patent Licensing," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 161-171, Spring.
- Kyle Bagwell & Garey Ramey, 1989.
"Oligopoly Limit Pricing,"
829, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Ashiya, M., 1998.
"Weak Entrants are Welcome,"
ISER Discussion Paper
0468, Institute of Social and Economic Research, Osaka University.
- Matthews, Steven A & Mirman, Leonard J, 1983.
"Equilibrium Limit Pricing: The Effects of Private Information and Stochastic Demand,"
Econometric Society, vol. 51(4), pages 981-96, July.
- Steven A. Matthews & Leonard J. Mirman, 1981. "Equilibrium Limit Pricing: The Effects of Private Information and Stochastic Demand," Discussion Papers 494, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- B. Douglas Bernheim, 1984. "Strategic Deterrence of Sequential Entry into an Industry," RAND Journal of Economics, The RAND Corporation, vol. 15(1), pages 1-11, Spring.
When requesting a correction, please mention this item's handle: RePEc:iek:wpaper:0503. 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: (Kim, Jisoo)
If references are entirely missing, you can add them using this form.