Entry in Monopoly Market

S-Tier
Journal: Review of Economic Studies
Year: 1990
Volume: 57
Issue: 4
Pages: 531-553

Authors (2)

Timothy F. Bresnahan (Stanford University) Peter C. Reiss (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

This paper develops new empirical models of market concentration from game-theoretic models of entry. We construct our models from inequality conditions that describe entrants' equilibrium strategies in simultaneous-move and sequential-move games, and use them to study the effects of entry in isolated monopoly markets for new automobiles. From estimates of the market size necessary to support one and two dealers, we conclude that monopoly dealers do not block the entry of a second dealer. We also find that entry does not cause price-cost margins to fall by much.

Technical Details

RePEc Handle
repec:oup:restud:v:57:y:1990:i:4:p:531-553.
Journal Field
General
Author Count
2
Added to Database
2026-01-24