haku: @indexterm Aerospace industry / yhteensä: 141
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| Tekijä: | Seabright, P. |
| Otsikko: | The starfish effect: Can market entry by one firm encourage further entry by others ? |
| Lehti: | European Economic Review
1996 : APR, VOL. 40:3-5, p. 541-550 |
| Asiasana: | AEROSPACE INDUSTRY MARKETS OLIGOPOLY COMPETITION PRODUCTION |
| Kieli: | eng |
| Tiivistelmä: | The paper examines the impact of entry decisions into oligopolistic markets upon the entry and exit decisions of competing producers. When learning economies are important, one firm's entry may paradoxically make entry more attractive to others by weakening the ability of a dominant firm to produce at low cost. The likelihood of this outcome depends on the extent to which variable costs of production decline as output increases. It is suggested that entry-inducing entry may actually have occurred in part of the market for large civilian passenger aircraft. A more general conclusion is robust, that is, in industries where scale and scope effects are large, the impact of entry is not just upon competition but on costs. These effects work in opposite directions to influence the decisions of entry of other firms. |
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