文档介绍：THE JOURNAL OF INDUSTRIAL ECONOMICS  0022‐1821 
VolumeLVII  December  2009  No. 4 
Notes on the Journal of Industrial Economics Website
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PROFIT RAISING ENTRY*
ARIJIT MUKHERJEE †
LAIXUN ZHAO ‡
Common wisdom suggests that entry reduces profits of incumbent firms. On the
contrary, we demonstrate that if the incumbents differ in marginal costs and the
entrants behave like Stackelberg followers, then entry may benefit the cost efficient
incumbents while hurting the cost inefficient ones. And the total outputs of all
incumbents may be higher under entry.
*We thank the Editor for extremely helpful comments and suggestions. Arijit
Mukherjee gratefully acknowledges financial support from The Leverhulme Trust
under Programme Grant F114/BF. The usual disclaimer applies.
†Authors’ affiliations: School of Economics, University of Nottingham,
University Park, Nottin