The top-dog and the lean and hungry look strategies in endogenous entry

C-Tier
Journal: Economic Modeling
Year: 2011
Volume: 28
Issue: 6
Pages: 2776-2782

Authors (2)

Cato, Susumu (University of Tokyo) Oki, Ryoko (not in RePEc)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

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

Abstract

This paper examines the strategic commitment behavior of heterogeneous leaders in an endogenous market structure. We demonstrate that each leader's investment level is independent of the other leaders' characters. Furthermore, we show that a leader over-invests (resp. under-invests) when an investment increases (resp. decreases) the leader's marginal profitability. Such an investment always makes leaders employ aggressive strategies in the competition relative to those in a no-commitment case. This result implies that aggressiveness of leaders is a robust observation in an endogenous market structure.

Technical Details

RePEc Handle
repec:eee:ecmode:v:28:y:2011:i:6:p:2776-2782
Journal Field
General
Author Count
2
Added to Database
2026-01-25