Bennour, Khaled (2007): Advertising and Entry Deterrence: How the Size of the Market Matters. Published in: International Journal of Business and Economics , Vol. 6, No. 3 (2007): pp. 199-206.
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We analyze the relationship between market size and entry when an incumbent and potentially an 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.
|Item Type:||MPRA Paper|
|Original Title:||Advertising and Entry Deterrence: How the Size of the Market Matters|
|Keywords:||advertising; entry; market size|
|Subjects:||D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection|
|Depositing User:||Khaled Bennour|
|Date Deposited:||11. May 2010 10:41|
|Last Modified:||30. Dec 2015 13:39|
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