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- W2003756880 abstract "In this paper, we simulate a sequential entry of firms in a differentiated industry à la Hotelling. Firms select a product (location) once for all. They are aware of the unique price equilibrium that will take place after entry has occurred, and take into account the behaviour of subsequent entrants. It is found that early entrants will systematically locate around the centre, but in such a way as not to induce later competitors to locate in between them. Location choices are also investigated as an instrument for entry deterrence, which is feasible because of a fixed cost; we identify several ranges of fixed cost, for which entry is ‘innocently’ deterred (corresponding to a natural monopoly, duopoly, triopoly …). Entry deterrence is then typically used to stretch the range of fixed cost for which a given number of firms can be sustained. Deterrence strategies are consistently such that firms locate at more regular intervals." @default.
- W2003756880 created "2016-06-24" @default.
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- W2003756880 date "1987-01-01" @default.
- W2003756880 modified "2023-10-18" @default.
- W2003756880 title "Endogenous sequential entry in a spatial model" @default.
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- W2003756880 doi "https://doi.org/10.1016/s0167-7187(87)80004-8" @default.
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