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From course:

Industrial Organisation 2022

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Question:

What are the two pricing strategies, and how do they act as an strategic entry barrier?

Author: Hjalmer Pedersen



Answer:

1. Limit pricing (Pre-entry strategy) 2. Predatory pricing (Post-entry strategy) They are strategic entry barriers as they are placed by the firms already on the market to deter new entrants that increases competition.


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