ENTRY, ITS DETERRENCE, AND ITS ACCOMMODATION - A STUDY OF THE US PHOTOGRAPHIC FILM INDUSTRY

This work, set in the ''new empirical industrial organization'' framew ork (Bresnahan, 1987), examines firm-level demand-based and cost-based explanations for entry and accommodation strategies in the U.S. photo graphic film industry. I first estimate preentry and postentry marker structures. Then, using the estimated demand, cost, and market conduct parameters, I show how entry by Fuji Photo, or lack thereof by others , is a function of two market structures. I also show how market struc ture and conduct, and changes in them over the pre- and postentry peri ods, are, in turn, functions of entry, its deterrence, and its accommo dation.