Table 15 Milgrom–Roberts model
Parameters values when \(c_{incumbent}=c_{h}\) | Market outcome | Parameters values when \(c_{incumbent}=c_{l}\) | Market outcome |
|---|---|---|---|
\(c_{l} = 0.1\); \(c_{h}=0.84\) \(c_{e} = 0.1\) | Incumbent is expelled | \(c_{l} = 0.1\); \(c_{h}=0.84\) \(c_{e} = 0.1\) | Duopoly competition |
\(c_{l} = 0.1\); \(c_{h}=0.84\) \(c_{e} = 0.2\) | Incumbent is expelled | \(c_{l} = 0.3\); \(c_{h}=0.84\) \(c_{e} = 0.1\) | Incumbent is expelled |
\(c_{l} = 0.1\); \(c_{h}=0.84\) \(c_{e} > 0.2\) | Block to entry | \(c_{l} = 0.1\); \(c_{h}=0.84\) \(c_{e} > 0.2\) | Block to entry |