Capacity precommitment as a barrier to entry: A Bertrand-Edgeworth approach

Economic Theory

Volumn 15, Issue 3, 2000, Pages 501-530

  Allen, Beth ^a,b   Deneckere, Raymond ^c   Faith, Tom ^d   Kovenock, Dan ^e  

^a UNIVERSITY OF MINNESOTA   (United States)

^b FEDERAL RESERVE BANK OF MINNEAPOLIS   (United States)

^c UNIVERSITY OF WISCONSIN MADISON   (United States)

^d Faith Consulting   (Netherlands)

^e PURDUE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0034348139     PISSN: 09382259     EISSN: None     Source Type: Journal    
DOI: 10.1007/s001990050309     Document Type: Article

References (23)

1. Allen, B.: Capacity precommitment as an entry barrier for price-setting firms. International Journal of Industrial Organization 11(1), 63-72 (1993)
2. Basu, K., Singh, N.: Entry-deterrence in Stackelberg perfect equilibria. International Economic Review 31(1), 61-71 (1990)
3. Bulow, J., Geanakoplos, J., Klemperer, P.: Holding idle capacity to deter entry. Economic Journal 95(377), 178-182 (1985)
4. Dasgupta, P., Maskin, E.: The existence of equilibrium in discontinuous economic games. I: Theory. Review of Economic Studies 53(1), 1-26 (1986)
5. Davidson, C., Deneckere, R.: Long-run competition in capacity, short-run competition in price, and the cournot model. Rand Journal of Economics 17(3), 404-415 (1986)
6. Deneckere, R.J., Kovenock, D.: Capacity-constrained price competition when unit costs differ. Northwestern University, CMSEMS Discussion Paper No. 861 (1989)
7. Deneckere, R.J., Kovenock, D.: Bertrand-Edgeworth duopoly with unit cost asymmetry. Economic Theory 8(1), 1-25 (1996)
8. Dixit, A.: A model of duopoly suggesting a theory of entry barriers. Bell Journal of Economics 10(1), 20-32 (1979)
9. Dixit, A.: The role of investment in entry-deterrence. Economic Journal 90(357), 95-106 (1980)
10. Edgeworth, F.Y.: Pure theory of monopoly. In Edgeworth, F.Y. (ed.) Papers relating to political economy, Vol.I, Chapter E, pp. 111-142. New York: Burt Franklin 1925
11. Gangopadhyay, S., Ray, D., Sengupta, K.: Excess capacity and entry deterrence. Revista Espanola de Economia 8(1), 91-111 (1991)
12. Gelman, J.R., Salop, S.C.: Judo economics: capacity limitation and coupon competition. Bell Journal of Economics 14(2), 315-325 (1983)
13. Gilbert, R.J.: Pre-emptive competition. In: Stiglitz, J.E., Mathewson, F. (eds.), New developments in the analysis of market structure, pp. 90-125. Cambridge: MIT Press 1986
14. Kreps, D.M., Scheinkman, J.A.: Quantity precommitment and Bertrand competition yield Cournot outcomes. Bell Journal of Economics 14(2), 326-337 (1983)
15. Kydland, F.E., Prescott, E.C.: Time to build and aggregate fluctuations. Econometrica 50(6), 1345-1370 (1982)
16. Levitan, R., Shubik, M.: Price duopoly and capacity constraints. International Economic Review 13(1), 111-122 (1972)
17. Saloner, G.: Excess capacity as a policing device. Economics Letters 18, 83-86 (1985)
18. Shapiro, C.: Theories of oligopoly behavior. In: Schmalensee, R., Willig, R.D. (eds.) Handbook of industrial organization, Vol. 1, Chapter 6, pp. 329-410. Handbooks in Economics, No. 10. Amsterdam: North Holland 1989
19. Spence, A.M.: Entry, capacity, investment and oligopolistic pricing. Bell Journal of Economics 8(2), 534-544 (1977)
20. Spulber, D.F.: Capacity, output, and sequential entry. American Economic Review 71(3), 503-514 (1981)
21. Stiglitz, J.E.: Technological change, sunk costs, and competition. Brookings Papers on Economic Activity 3(0), 883-937 (1987)
22. Tirole, J.: The theory of industrial organization. Cambridge: MIT Press 1988
23. Ware, R.: Sunk costs and strategic commitment: a proposed three-stage equilibrium. Economic Journal 94(374), 370-378 (1984)