Entry, its Deterrence, and its Accommodation: A Study of the U.S. Photographic Film Industry
RAND JOURNAL OF ECONOMICS, Vol. 27, No. 3
Posted: 11 May 1998
Abstract
This work, set in the "new empirical industrial organization" framework (Bresnahan, 1987), examines firm-level demand-based and cost-based explanations for entry and accommodation strategies in the U.S. photographic film industry. I first estimate pre-entry and post-entry market structures. Then, using the estimated demand, cost, and market conduct parameters, I show how entry by Fuji Photo, or lack thereof by others, is a function of two market structures. I also show how market structure and conduct, and changes in them over the pre- and post-entry periods, are, in turn, functions of entry, its deterrence, and its accommodation.
JEL Classification: L68
Suggested Citation: Suggested Citation