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Profit raising entry in a vertical structure

Mukherjee, Arijit

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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).

Journal Article Type Article
Publication Date 2019-10
Journal Economics Letters
Print ISSN 0165-1765
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 183
Article Number 108543
APA6 Citation Mukherjee, A. (2019). Profit raising entry in a vertical structure. Economics Letters, 183, https://doi.org/10.1016/j.econlet.2019.108543
DOI https://doi.org/10.1016/j.econlet.2019.108543
Keywords Entry; Final goods; Input; Profit JEL Classification: D43; L11; L13
Publisher URL https://www.sciencedirect.com/science/article/pii/S0165176519302666

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