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The Role Of Investment In Entry-Deterrence

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  • Dixit, Avinash

Abstract

The theory of large-scale entry into an industry is made complicated by its game-theoretic aspects. Even in the simplest case of one established firm facing one prospective entrant, there are some subtle strategic interactions. The established firm's pre-entry decisions can influence the prospective entrant's view of what will happen if he enters, and the established firm will try to exploit this possibility to its own advantage.
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Suggested Citation

  • Dixit, Avinash, 1979. "The Role Of Investment In Entry-Deterrence," Economic Research Papers 269038, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269038
    DOI: 10.22004/ag.econ.269038
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