Entry Barriers and Non-Price Aspects of Firms' Behavior

Needham, D.B.

doi:10.2307/2097895

Cited by 23 publications

(12 citation statements)

References 22 publications

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“…The way in which economies of scale can serve as a barrier to entry around a market has attracted considerable attention in economics, dating from the work of Kaldor (1939, with recent contributions from Wenders (1971), Needham (1976) and Dixit (1979, 1980), who have continued to demonstrate the complexity and the scope of the intellectual task confronting the managers who seek to exploit or overcome such barriers.…”

Section: Economies Of Scalementioning

confidence: 99%

The experience curve from the economist's perspective

Hall¹,

Howell²

1985

Strategic Management Journal

100

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This paper undertakes a critique of experience curves from several angles. It considers the extent to which they can be regarded as an extension of learning curves, and concludes that the benefits from learning‐by‐doing at plant level are exhausted relatively early. It goes on to consider the evidence that there is a common slope to experience curves, their usefulness for forecasting prices, and possible reasons for a spurious correlation between accumulated output and average cost. It concludes by demonstrating the differences in strategic implications between the various possible economic factors which may underlie the experience curve. The conclusion is that experience curves are partly spurious, and of little practical value in forecasting or decision making.

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Section: Economies Of Scalementioning

confidence: 99%

The experience curve from the economist's perspective

Hall¹,

Howell²

1985

Strategic Management Journal

100

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“…(c) claims that, for a barrier arising from advertising to exist, there must be asymmetric or irrational behaviour by the existing and potential firms (Needham, 1976;Schmalensee, 1974Schmalensee, , 1976.…”

Section: Discussionmentioning

confidence: 99%

“…Perhaps the closest approach to a theory are the papers by Schmalensee (1974) and Needham (1976). Perhaps the closest approach to a theory are the papers by Schmalensee (1974) and Needham (1976).…”

Section: Introductionmentioning

confidence: 99%

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Advertising and the Theory of Entry Barriers

Cubbin¹

1981

Economica

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“…Subsequent work, however, suggests that early economists exaggerate the entry‐deterring effects of incumbent pricing and advertising selections. As Needham (1976) argues, the incumbent's pre‐entry behavior deters entry only if some link exists between this behavior and the potential entrant's expected post‐entry profit. A link is present if the incumbent can commit to maintain its pre‐entry price and advertising in the event of entry, but an assumption that the incumbent can make such a commitment seems implausible.…”

Section: Introductionmentioning

confidence: 99%

Signalling and entry deterrence: a multidimensional analysis

Bagwell

2007

The RAND J of Economics

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I consider whether a privately informed incumbent can use limit pricing and upward distortions in advertising to deter profitable entry. Profitable entry is not deterred when the incumbent is privately informed only about its cost type. Profitable entry may be deterred, however, if the incumbent is privately informed about its cost type and its patience level. An equilibrium foundation is thus provided for the traditional hypothesis that limit pricing and aggressive advertising by an incumbent may deter profitable entry. At a methodological level, the article contributes by characterizing the refined equilibria of a signalling model with multiple dimensions of private information and multiple signals.

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Entry Barriers and Non-Price Aspects of Firms' Behavior

Cited by 23 publications

References 22 publications

The experience curve from the economist's perspective

The experience curve from the economist's perspective

Advertising and the Theory of Entry Barriers

Signalling and entry deterrence: a multidimensional analysis

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