The Impact of the Potential Entry of Copycats: Entry Conditions, Consumer Welfare, and Social Welfare
研究仿冒品潜在进入对市场的影响，分析仿冒品成功进入的条件，发现其潜在进入压力会促使在位企业降价，从而提升消费者福利，并在特定条件下增加社会总福利。
ABSTRACT This article examines the implications of the potential entry of a copycat who produces and sells a copycat (i.e., imitation) product that competes with the incumbent product. By analyzing a two‐period dynamic noncooperative game between these two firms, we identify conditions under which the copycat can gain successful market entry. More importantly, we find that the potential entry of a copycat creates (implicit) pressure for the incumbent to lower its selling price; hence, it improves consumer welfare. Finally, we identify conditions under which the potential entry of a copycat can increase social welfare (i.e., consumer welfare and the profit of both firms).