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The Costs and Effects of Market Entry

In: Dynamics of Entry and Market Evolution

Author

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  • Jati Sengupta

    (University of California)

Abstract

Evolution of any industry occurs through the entry of new firms and the growth of existing firms through increased market share. This market entry of new firms has its inherent costs. Some of these costs may arise due to various strategies of deterrence adopted by the existing firms. Other costs may be due to the market uncertainty, which may arise in the post-entry environment. The effects of entry include both the threat of potential entry into an oligopolistic industry regarding pricing, investment and R&D with advertising and also the actual entry affecting the strategies of oligopolistic suppliers in the post-entry game situation.

Suggested Citation

  • Jati Sengupta, 2007. "The Costs and Effects of Market Entry," Palgrave Macmillan Books, in: Dynamics of Entry and Market Evolution, chapter 3, pages 50-74, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-21101-8_3
    DOI: 10.1057/9780230211018_3
    as

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