De Novo Paper Revision
E* = f (p e - p f) when p e ³ p f
p e = f1(B, X, H, p , A)
p f = f2(B, X).
De novo entry is a function of expected entry profit minus entry-forestalling profits.
When expected entry profits are greater than or equal to entry-forestalling profits.
Where expected entry profits equal a function of legal barriers to entry, exogenous market characteristics, expected future market concentration, pre-entry profits, and future profits from out-of-territory and merger activity.
Where entry-forestalling profits equal a function of legal barriers to entry and exogenous market characteristics.