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Unformatted text preview: But..,there is the efficiency effect
o The replacemer,r.rr."rt" o[ r.*,***- innoration opportunity is not available to
o Uthe monopolist's innovation can be mimicked by
the entrant, then the .,efficiency effect" comes into
play. o A monopolist may have a gleater incentive to irwest than a potential entrant because the monopolist will
invest to remain a monopolist,while the potential
entrant may only be able to enter as a
o The monopolist has more to lose from entry than the duopolist. entranthastogain. I i
i I ...
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This note was uploaded on 12/29/2011 for the course ECON 6 taught by Professor Dianne during the Fall '10 term at Simon Fraser.
- Fall '10