Entry, Its Deterrence, and Its Accommodation: A Study of the U.S. Photographic Film Industry

Vrinda Kadiyali

RAND Journal of Economics, 1996, vol. 27, issue 3, 452-478

Abstract: This work, set in the "new empirical industrial organization" framework (Bresnahan, 1987), examines firm-level demand-based and cost-based explanations for entry and accommodation strategies in the U.S. photographic film industry. I first estimate preentry and postentry market structures. Then, using the estimated demand, cost, and market conduct parameters, I show how entry by Fuji Photo, or lack thereof by others, is a function of two market structures. I also show how market structure and conduct, and changes in them over the pre- and postentry periods, are, in turn, functions of entry, its deterrence, and it accommodation.

Date: 1996
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