Economics at your fingertips  

Strategic Entry and Potential Competition: Evidence from Compressed Gas Fuel Retail

Giulia Pavan, Andrea Pozzi and Gabriele Rovigatti ()

No 12113, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the effect of competition on preemption incentives. An unexpected change in regulation in the Italian retail market for compressed natural gas fuel allows us to identify the potential entrants and creates exogenous variation in their number. We document that markets with a larger pool of potential competitors experience faster entry. We provide evidence suggesting that this occurs because a larger number of potential entrants raises firms' incentives to preempt.

Keywords: potential entrants; preemption; retail fuel market (search for similar items in EconPapers)
JEL-codes: L12 L22 L81 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-com, nep-ene and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at

Related works:
Journal Article: Strategic entry and potential competition: Evidence from compressed gas fuel retail (2020) Downloads
Working Paper: Strategic Entry and Potential Competition - Evidence from Compressed Gas Fuel Retail (2017) Downloads
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:

Ordering information: This working paper can be ordered from ... rs/dp.php?dpno=12113

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

Page updated 2020-08-03
Handle: RePEc:cpr:ceprdp:12113