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On the probability of entry in potential competition cases
Author(s) -
Horowftz Ira
Publication year - 1985
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090060209
Subject(s) - stockpile , competition (biology) , argument (complex analysis) , economics , microeconomics , industrial organization , chemistry , physics , ecology , biochemistry , biology , nuclear physics
This paper explores, both theoretically and empirically, the extent to which having ‘other potential entrants’ to a market injected into potential‐competition cases has been a worthwhile enterprise. This two‐pronged attack leads to the conclusion that (he attempt to specifically identify potential entrants probably results in our deluding ourselves as to the likelihood that entry will occur, and that unless a convincing argument can be made to the effect that any given potential entrant from a stockpile of unnamed potential entrants is ‘reasonably likely’ to elect the entry option, expanding lhat stockpile will be similarly misleading.