search query: @indexterm FIRM (THEORY OF) / total: 191
reference: 88 / 191
| Author: | Klemperer, P. |
| Title: | Entry deterrence in markets with consumer switching costs. |
| Journal: | Economic Journal
1987 : VOL. 97 CONFERENCE PAPERS SUPPL. , p. 99-117 |
| Index terms: | ENTRY CONDITIONS MARKET STRUCTURE FIRM (THEORY OF) CONSUMER BEHAVIOUR |
| Language: | eng |
| Abstract: | Consumer switching costs can explain the phenomenon of limit pricing: an incumbent monopolist may charge lower prices than would a monopolist unthreatened by entry,in order to persuade more customers to "buy in" to its product and so deter entry. A similar logic can also lead an incumbent faced by certain entry to limit price and over-invest in its pre-entry customer base because of the strategic advantage that this confers in post-entry competition. |
SCIMA