Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 19, 2012 erstellt
Description:
This paper is the first to provide a general context whereby potential entry can lead incumbent firms to permanently reduce the intensity of competition in a market. All previous results found that potential entry would lead to lower prices and greater competition. Examining markets where entry occurs by the acquisition of access rights from an existing incumbent, we demonstrate that, where competitive choices are strategic complements, a more e fficient entrant may be unable to acquire those rights from a less effi cient incumbent due to the unilateral accommodating behaviour of the e fficient incumbent. Similarly, such accommodating behaviour may deter e fficient investment by an incumbent. These results have implications as to how economists view potential entry and its benefi ts