Question: Suppose the first mover must pay the same entry cost as the second, K1 = K2 = K. Suppose further that K is high enough

Suppose the first mover must pay the same entry cost as the second, K1 = K2 = K. Suppose further that K is high enough that the first mover prefers to deter rather than accommodate the second mover’s entry. Would this sunk cost not be high enough to keep the first mover out of the market, too? Why or why not?

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