Free entry may reduce total willingness-to-pay

Authors
Constantatos, C Perrakis, S
Citation
C. Constantatos et S. Perrakis, Free entry may reduce total willingness-to-pay, ECON LETT, 62(1), 1999, pp. 105-112
Citations number
5
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
62
Issue
1
Year of publication
1999
Pages
105 - 112
Database
ISI
SICI code
0165-1765(199901)62:1<105:FEMRTW>2.0.ZU;2-#
Abstract
In a natural oligopoly with quality commitments, entry accommodation may in duce an incumbent to adopt a lower quality relative to a protected monopoli st. Due to quality distortion a protected monopoly may be welfare superior to a duopoly even absent cost considerations. (C) 1999 Elsevier Science S.A . All rights reserved.