Limit Qualities and Entry Deterrence
研究在位企业间的竞争如何与潜在进入者的沉没成本相互作用，从而决定均衡产品配置，发现企业可用极限质量阻止进入，且竞争可能导致过度进入阻止。
In this article, we investigate how the interplay of competition among incumbents and the magnitude of a potential entrant's setup cost determines the configuration of the array of products to be offered in a perfect Nash equilibrium. We show that incumbents can use limit qualities to deter entry. We also demonstrate that rivalry among incumbents may lead to excessive entry deterrence. Our analysis generates predictions about the correlation between the degree of product differentiation and the size of the entrant's setup costs.