Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/189159
Authors: 
Barham, Brad
Ware, Roger
Year of Publication: 
1991
Series/Report no.: 
Queen's Economics Department Working Paper 835
Abstract: 
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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