The paper shows that a monopolist can have no incentive to expand the product line when entry is blocked while the optimal strategy entails offering a second product when facing entry. The model is applied to a recent antitrust Italian case.
Entry, Product Line Expansion and Predation
POLO, MICHELE;
2007
Abstract
The paper shows that a monopolist can have no incentive to expand the product line when entry is blocked while the optimal strategy entails offering a second product when facing entry. The model is applied to a recent antitrust Italian case.
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