Incumbent firms' response to entry: Price, advertising, and new product introduction
利用即食麦片行业数据，发现在位企业通过广告而非价格或新产品来限制进入规模，但对新进入者会采取激进的价格回应。
Theoretical research shows that one of the more important determinants of entry is the anticipated response of incumbent firms. Incumbents can use price, advertising, or new products to limit or deter entry. Most empirical research however finds little support for these models. Using data from the ready-to-eat cereal industry I find that incumbents accommodate other incumbents on price and new products but use advertising to limit the scale of entry. Entrants are more likely to be met with an aggressive price response. I also find that incumbents are more likely to respond when the scale of entry is greater.