Abstract
Evolution of any industry occurs through the entry of new firms and the growth of existing firms through increased market share. This market entry of new firms has its inherent costs. Some of these costs may arise due to various strategies of deterrence adopted by the existing firms. Other costs may be due to the market uncertainty, which may arise in the post-entry environment. The effects of entry include both the threat of potential entry into an oligopolistic industry regarding pricing, investment and R&D with advertising and also the actual entry affecting the strategies of oligopolistic suppliers in the post-entry game situation.
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