Entry and market selection of firms: A laboratory study
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Dosyalar
Tarih
2008-12
Yazarlar
Dergi Başlığı
Dergi ISSN
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Yayıncı
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
We study how markets adjust to the entry of new firms under different conditions. Two incumbents face entry by three other firms. When firms' costs are equal, entry always leads consumer surplus and profits to their equilibrium levels. When entrants are more efficient than incumbents, entry leads consumer surplus to equilibrium. With cost asymmetries, market behavior is satisfactory from the consumers' standpoint but does not yield adequate signals to other potential entrants. Simultaneous entry is in the short run more favorable to consumers than sequential entry. A longer incumbency phase favors consumers after entry. © 2008 Elsevier B.V. All rights reserved.
Açıklama
Anahtar Kelimeler
Experiments, Imperfect competititon, Market selection
Kaynak
Journal of Economic Behavior and Organization
WoS Q Değeri
Q1
