Pre-emptive Competition

Pre-emptive competition occurs in any market where the timing of actions is important. Schmalensee (1978) considers the pre-emptive introduction of brands to deter competitors. Eaton and Lipsey (1979) examine pre-emptive location models, while Gilbert and Newbery (1982) analyse the returns from accelerated investments in research and development. Pre-emptive investment is the theme in Dixit (1979, 1980), Eaton and Lipsey (1980, 1981), Fudenberg and Tirole (1979), Fudenberg, et al. (forthcoming), Gilbert and Harris (1981a, b), Rao and Rutenberg (1979) and Spence (1977, 1979). Ware (1981) considers the potential for pre-emptive product differentiation. This is only a partial listing of work where pre-emptive activity plays a central role, and at current rates of output no doubt many more papers will be added to the pre-emption pool.