Entry in a Stackelberg perfect equilibrium

Arijit Mukherjee

Economics Bulletin, 2007, vol. 12, issue 33, 1-6

Abstract: This paper considers welfare effects of entry when the incumbent firm behaves like a Stackelberg leader in the product market. In contrast to the existing literature, we show that entry may increase welfare for any cost asymmetries between the firms. Using a general demand function we show the condition for welfare improving entry.

Keywords: Cournot; competition; Entry; Stackelberg; competition; Welfare (search for similar items in EconPapers)
JEL-codes: D3 L1 (search for similar items in EconPapers)
Date: 2007-12-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/pubs/EB/2007/Volume12/EB-07L10028A.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-07l10028

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().