Select A Store
Select Store
My Store:
Select A Store
Availability:
null
Overview
Overview
By permitting firms to have different entry costs, I generalize two previously studied models of two-stage entry and pricing amongst Bertrand competitors. I find that the existing results depend critically on the symmetry assumption. For example, if firms' entry decisions are observed before price-setting occurs, then total welfare can increase following the introduction of a potential entrant, in contrast to the unambiguous welfare reduction found in the symmetric setting. If firms' entry decisions are unobserved before pricing-setting occurs, then the expected price typically decreases or remains unchanged following the introduction of a potential entrant, in contrast to the unambiguous price increase found in the symmetric setting. In both price-setting environments, competition increases following the introduction of potential entrants with sufficiently low entry costs, a finding that is obscured by focusing on the symmetric models.
- Format: Trade Paperback
- Author: Penny Hill Press Inc
- ISBN: 9781523326587
- Condition: New
- Dimensions: 11.02 x 0.05
- Number Of Pages: 26
- Publication Year: 2016
Language:
English