The Costs and Effects of Market Entry

Jati Sengupta
Additional contact information
Jati Sengupta: University of California

Chapter 3 in Dynamics of Entry and Market Evolution, 2007, pp 50-74 from Palgrave Macmillan

Abstract: Abstract Evolution of any industry occurs through the entry of new firms and the growth of existing firms through increased market share. This market entry of new firms has its inherent costs. Some of these costs may arise due to various strategies of deterrence adopted by the existing firms. Other costs may be due to the market uncertainty, which may arise in the post-entry environment. The effects of entry include both the threat of potential entry into an oligopolistic industry regarding pricing, investment and R&D with advertising and also the actual entry affecting the strategies of oligopolistic suppliers in the post-entry game situation.

Keywords: Setup Cost; Market Entry; Market Evolution; Limit Price; Incumbent Firm (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-21101-8_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230211018

DOI: 10.1057/9780230211018_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().