Marketing Letters

, Volume 1, Issue 3, pp 221–228 | Cite as

Entry encouragement

  • M. Corstjens
  • C. Matutes
  • D. Neven


In this paper, we investigate the possibility that a dominant firm will encourage rather than deter entry of a potential competitor. We find that entry can be encouraged by a dominant firm in order to induce a new entrant to resolve the demand uncertainty in a new market. We propose a specific incentive mechanism that the incumbent can use to encourage entry and find plausible circumstances under which entry encouragement is a dominant competitive strategy.

Key words

Entry Demand Uncertainty Incentives Competitive Strategy 


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Copyright information

© Kluwer Academic Publishers 1990

Authors and Affiliations

  • M. Corstjens
  • C. Matutes
  • D. Neven

There are no affiliations available

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