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Barham, Brad
Ware, Roger
Year of Publication: 
Series/Report no.: 
Queen's Economics Department Working Paper 835
A model of sequential entry with Leontief costs is studied in which demand is iso-elastic. Some or all firms may hold excess capacity in the perfect equilibrium to the entry game. Firms with a first mover advantage trade off the positioning value of a large investment in capacity, leading to a large market share, against the possible costs of bearing the burden of entry deterrence through holding excess capacity in equilibrium.
Document Type: 
Working Paper

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