Profit raising entry in a vertical structure

Mukherjee, Arijit

Abstract

© 2019 Elsevier B.V. In contrast to the usual belief, we show that entry in the final goods market increases profits of the incumbent final goods producers if there is free entry in the input market and the final goods are sufficiently differentiated. Thus, we extend Matsushima (2006).

Citation

Mukherjee, A. (2019). Profit raising entry in a vertical structure. Economics Letters, 183, https://doi.org/10.1016/j.econlet.2019.108543

• Journal Article Type: Article
• Acceptance Date: Jul 12, 2019
• Online Publication Date: Jul 24, 2019
• Publication Date: 2019-10
• Deposit Date: Jul 12, 2019
• Publicly Available Date: Jan 25, 2021
• Journal: Economics Letters
• Print ISSN: 0165-1765
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 183
• Article Number: 108543
• DOI: https://doi.org/10.1016/j.econlet.2019.108543
• Keywords: Entry; Final goods; Input; Profit JEL Classification: D43; L11; L13
• Public URL: https://nottingham-repository.worktribe.com/output/2301832
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0165176519302666