All-units Discounts by a Dominant Producer Threatened by Partial Entry

All-units Discounts by a Dominant Producer Threatened by Partial Entry

Michael A. Salinger
Antitrust & Competition

In this article, Michael Salinger shows how a dominant firm that faces competition for part but not all of its market can maintain prices above competitive levels by offering cliff discounts with a threshold that allocates some market share to its competitors. To read more, click the link below. 

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