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Artículo en revista académica

calendar_month Publicación: 01/01/2007

Capital Structure and Entry Deterrence with Multiple Incumbents

This paper uses a two-stage Cournot duopoly model with demand uncertainly to examine the strategic role debt plays in deterring a company from entering when a potential entrant can enter one of several markets. We show that as the number of alternative markets available for entry rises, the incumbents’ incentive to use debt as a deterrent falls. Thus, a potential entrant will prefer to have a larger number of alternative markets to enter in order to lower the incumbents’ incentive to take strategic actions against it.

Fuente: B.E. Journal of Economic Analysis & Policy

Volumen: 7, número: 1, artículo: 22

IF: 0,470

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