Delaying or deterring entry. A game-theoretic analysis (Q757220): Difference between revisions

Interaction amongst game entrants with a predation model, in which incomplete information about the new incubant gives an incentive to enter after others in order to observe what happens to them. The incumbent's payoff is O in a given market if he shares in that market, and \(\alpha\) (t) each instant forever after, or (\(\alpha\) (t)/r) if he preys that market. If the dates of entry are \(d_ i\) for player i, payoff is then: \((1/r)(1-\exp (-rd_ i))c\). The model leads to endogeneous delayed entry, rather than entry deterrence only.