In the Dixit-Spence model, the incumbent firm prevents entry by threatening to produce a level of output beyond the limit quantity. What makes this threat credible?

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The Answer of In the Dixit-Spence model, the incumbent firm prevents entry by threatening to produce a level of output beyond the limit quantity. What makes this threat credible?

In the Dixit-Spence Model, the Incumbent Firm Prevents Entry by Threatening