Stackelberg Competition with Endogenous Entry
Bibliographic Data
| ID | 9718745 |
|---|---|
| Authors | Federico Etro (0000-0002-7184-8696, University of Milan, Bicocca and Intertic, corresponding author) |
| Year | 2008 |
| Volume | 118 |
| Issue | 532 |
| Pages | 1670-1697 |
| Publication date | 2008-10-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2008.02185.x |
| OpenAlex | W1481215291 |
| Language | EN |
| Citations received | 7 |
| References cited | 24 |
I characterise endogenous market structures where leaders have a first-mover advantage and entry is endogenous. Leaders are always more aggressive than the followers, independently from strategic substitutability or complementarity. Under quantity competition, leaders produce more than any follower and I determine the conditions for entry-deterrence (high substitutability and non-increasing marginal costs). Under price competition, leaders set lower prices than the followers (the opposite than with an exogenous number of firms). In contests, leaders invest more than each follower. In all these cases a leadership improves the allocation of resources compared to the Nash equilibrium with endogenous entry. Copyright © The Author(s). Journal compilation © Royal Economic Society 2008
Barriers to entry · Competition (biology · Complementarity (molecular biology · Deterrence theory · Economics · Endogeny · First-mover advantage · Industrial organization · Marginal cost · Market structure · Microeconomics · Stackelberg competition · Strategic complements · Consumer Market Behavior and Pricing · Experimental Behavioral Economics Studies · Merger and Competition Analysis
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Do Followers Really Matter in Stackelberg Competition
Regulation, Resources, and Innovation
Intensité de R&D et réglementation de marché
Endogenous Market Structures and Innovation by Leaders
| Citations per year | 0.41 |
|---|---|
| Citation span | 2009 - 2019 (11) |
| Highly cited | No |