If an incumbent threatens to retaliate against entry,but its profits are greater under accommodated entry than under the proposed threat,potential entrants will ignore the threat.

Name: If an incumbent threatens to retaliate against entry,but its profits are greater under accommodated entry than under the proposed threat,potential entrants will ignore the threat.
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Question

Quizplus · Accepted Answer

The threat is not credible since the incumbent firm is better off accommodating entry than retaliating.

If an Incumbent Threatens to Retaliate Against Entry,but Its Profits