The Impact of Buyers Expectations on Entry Deterrence, Economic Letters
A model of entry deterrence is presented in which consumers are perfectly informed about an incumbent monopolist's product quality but are imperfectly informed about the qualities of potential entrants. To deter entry, the monopolist chooses a higher price and quality than he would in the absence of an entry threat.
Besanko, David. 1988. The Impact of Buyers Expectations on Entry Deterrence. Economic Letters. 26(4): 26-42.