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JOURNALS // Vestnik TVGU. Seriya: Prikladnaya Matematika [Herald of Tver State University. Series: Applied Mathematics] // Archive

Vestnik TVGU. Ser. Prikl. Matem. [Herald of Tver State University. Ser. Appl. Math.], 2012, Issue 1, Pages 143–153 (Mi vtpmk206)

Socio-Economic Models

Equilibria with barriers for the entry of firms on the market in the generalized Stackelberg model

G. V. Kolesnik

JSC "IDGC Holding", Moscow

Abstract: Equilibria in the generalized Stackelberg model are studied which allow the existense of inactive firms in the system. It is shown that the threat of their entry on the market urges its participants to keep the barrier consisting in the market price lowering under the minimal marginal cost of inactive firms. This leads to the change in the market equilibrium parameters against the situation when there is no inactive firms in the system.

Keywords: firm, market, competition, oligopoly, entry deterrence, equilibrium, profit, hierarcihcal game, Stackelberg model.

UDC: 338.516.4, 339.137.2

Received: 11.02.2012
Revised: 15.02.2012



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