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Entry and Entry Deterrence in Penetrable Markets

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  • Calem, Paul S

Abstract

This paper presents a game theoretic model of entry. A potential entrant into a given market is postulated to be a currently produci ng firm, whose product is a substitute on the production side for the good being sold in the market. An entrant is capable of switching pr oduction between markets faster than firms in general can adjust thei r total outputs. To some extent, a market faced with entry as such wi ll resemble a contestable market, and limit pricing behavior will occ ur. Copyright 1988 by The London School of Economics and Political Science.

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  • Calem, Paul S, 1988. "Entry and Entry Deterrence in Penetrable Markets," Economica, London School of Economics and Political Science, vol. 55(218), pages 171-183, May.
    • Handle: RePEc:bla:econom:v:55:y:1988:i:218:p:171-83
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    Cited by:

    1. Scott Baker & Pak Yee Lee & Claudio Mezzetti, 2011. "Intellectual property disclosure as threat," International Journal of Economic Theory, The International Society for Economic Theory, vol. 7(1), pages 21-38, March.
    2. Hanly, David & Cheung, Keith C. K., 1998. "Market structure of multi-product firms under free entry," Economics Letters, Elsevier, vol. 61(2), pages 159-163, November.
    3. Muhammad Lawal Ahmad Bashar, 1997. "Price Control in an Islamic Economy التسعير في اقتصاد إسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 9(1), pages 29-52, January.

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