Econometrica: Sep 1976, Volume 44, Issue 5

Limit Pricing, Uncertain Entry, and the Entry Lag

https://doi.org/0012-9682(197609)44:5<939:LPUEAT>2.0.CO;2-E
p. 939-946

Raymond R. De Bondt

An established seller's pre-entry price policy is studied under the assumption that this policy affects the probability of entry and that rivals need an entry lag to make their entries effective. The analysis is conducted using a modified Kamien-Schwartz limit pricing model.

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