IDEAS home Printed from
   My bibliography  Save this paper

The Role of Limit Pricing in Sequential Entry Models


  • Jeffrey Church
  • Roger Ware


In this paper we establish a complete characterization of the strategic interaction of firms in sequential entry models. The limit price plays an important coordinating role in non-cooperative sequential entry models. We show that for many firms in a large range of sequential entry equilibria, the limit price is effectively parametric, so that firms make investment decisions in a quasi-competitive manner. Entry deterrence is only pursued by firms at the beginning of the sequence if it is profitable; otherwise it is delegated to the last firms to enter.

Suggested Citation

  • Jeffrey Church & Roger Ware, 1991. "The Role of Limit Pricing in Sequential Entry Models," Working Papers 836, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:836

    Download full text from publisher

    File URL:
    File Function: First version 1991
    Download Restriction: no

    References listed on IDEAS

    1. Gupta, Kanhaya L, 1971. "Aggregation Bias in Linear Economic Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(2), pages 293-305, June.
    2. repec:qed:wpaper:37 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:wpaper:836. 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: (Mark Babcock). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.