Proof. If entry does not occur, the high-stock incumbents pro
ts areMH 1 (x1)+ M H 1 (x1), for a given
rst-period appropriation x1, and for a given appropriation level qm 1 (x1; H) that maximizes pro
ts in the second period of the game. If the high-stock incumbent marginally increases
rst period appropriation, it experiences an increase in pro
ts of 1… (More)
Figures and Tables
Sorry, we couldn't extract any figures or tables for this paper.