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Advertising and Entry Deterrence: How the Size of the Market Matters

Khaled Bennour ()

International Journal of Business and Economics, 2007, vol. 6, issue 3, 199-206

Abstract: We analyze the relationship between market size and entry when an incumbent and a potential entrant compete to gain market share and advertising is the only strategic variable. Entry occurs when the relative effectiveness of incumbent's advertising is smaller than a threshold level that depends on the size of the market. This threshold level is monotonically and positively related to market size. Consequently, equilibrium with entry is more likely the greater is the size of the market.

Keywords: advertising; entry; market size (search for similar items in EconPapers)
JEL-codes: D43 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Advertising and entry deterrence: how the size of the market matters (2007) Downloads
Working Paper: Advertising and Entry Deterrence: How the Size of the Market Matters (2007) Downloads
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International Journal of Business and Economics is currently edited by Hsiang-Tsai Chiang (Editor-in-Chief), Chiung-Ju Huang (Editor-in-Chief), Feng-Jyh Lin (Associate Editor), Tzu-Ching Weng (Associate Editor), Hsin-Yi Huang (Managing Editor) and Szu-Hsien Ho (Managing Editor)

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