Equilibrium uniqueness in entry games with private information

A-Tier
Journal: RAND Journal of Economics
Year: 2023
Volume: 54
Issue: 3
Pages: 512-540

Authors (3)

José‐Antonio Espín‐Sánchez (not in RePEc) Álvaro Parra (Dalhousie University) Yuzhou Wang (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study equilibria in static entry games with single‐dimensional private information. Our framework embeds many models commonly used in applied work, allowing for firm heterogeneity and selective entry. We introduce the notion of strength, which summarizes a firm's ability to endure competition. In environments of applied interest, an equilibrium in which entry strategies are ordered according to the firms' strengths always exists. We call this equilibrium herculean. We derive simple and testable sufficient conditions guaranteeing equilibrium uniqueness and, consequently, a unique counterfactual prediction.

Technical Details

RePEc Handle
repec:bla:randje:v:54:y:2023:i:3:p:512-540
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-28