Limit Pricing when incumbents have conflicting interests
Research output: Contribution to journal › Journal article › Research › peer-review
This paper considers entry into a market with two incumbents where one prefers entry and one dislikes it. Unlike the entrant, incumbents know market demand. In separating equilibria incumbents play full information Nash-equilibrium strategies. When beliefs are unprejudiced, separating equilibria only exist if entry is relatively unimportant for an incumbent. In growing markets this condition will tend to be violated so that only pooling equilibria may exist
Original language | English |
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Journal | International Journal of Industrial Organization |
Volume | 17 |
Issue number | 6 |
Pages (from-to) | 801-825 |
ISSN | 0167-7187 |
DOIs | |
Publication status | Published - 1999 |
ID: 152491