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Interpret what a barrier to entry is and which factors may facilitate barriers to entry. Using a modified leader-follower (Spence and Dixit) model, explain how

Interpret what a barrier to entry is and which factors may facilitate barriers to entry. Using a modified leader-follower (Spence and Dixit) model, explain how an incumbent firm may strategically use capacities to deter entry. Under which conditions may the incumbent firm find it profitable to deter entry?

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