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Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry
Abstract
This paper presents an analysis of the ready-to-eat breakfast cereal industry based on and related to the current antitrust case involving its leading producers. A spatial competition comparison framework is employed, with brands assumed relatively immobile. It is argued that the industry's conduct, in which price competition is avoided and rivalry focuses on new brand introductions, tends to deter entry and protect profits. Entry into a new segment of the market in the 1970s is discussed. Relevant welfare-theoretic issues are analyzed, and it is argued that the remedy proposed by the FTC is likely to improve performance.
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Citations
Cited by
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Bakos, J. Y. (1997) · Management Science · doi:10.1287/mnsc.43.12.1676 · Cited by 2,259
(1982) · American Economic Review · Cited by 1,353
Living by the "Golden Rule": Multimarket Contact in the U. S. Airline Industry
Evans, W. N., & Kessides, I. N. (1994) · The Quarterly Journal of Economics · doi:10.2307/2118466 · Cited by 425
Demand Heterogeneity in Platform Markets: Implications for Complementors
Rietveld, J., & Eggers, J. P. (2018) · Organization Science · doi:10.1287/orsc.2017.1183 · Cited by 221
Metadata
- Authors
- Schmalensee, R.
- Venue
- The Bell Journal of Economics
- Publisher
- JSTOR
- Published
- 1978
- Volume
- 9
- Issue
- 2
- Pages
- 305
- ISSN
- 0361-915X (ISSN-L)
- OpenAlex
- W1572586719
- Cited by
- 869
- References
- 0
- FWCI
- 29.70
- Type
- journal article
- Language
- en
- Open access
- closed
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- Schmalensee, R. (1978). Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry. The Bell Journal of Economics. https://doi.org/10.2307/3003584
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.