Profit raising entry in a vertical structure

Arijit Mukherjee

Economics Letters, 2019, vol. 183, issue C, -

Abstract: In contrast to the usual belief, we show that entry in the final goods market increases profits of the incumbent final goods producers if there is free entry in the input market and the final goods are sufficiently differentiated. Thus, we extend Matsushima (2006).

Keywords: Entry; Final goods; Input; Profit (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:183:y:2019:i:c:23

DOI: 10.1016/j.econlet.2019.108543

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