If the entrant does not want to bargain with distributors, it may try to develop a favorable brand image by advertising directly to the final consumer, counting on the consumer to demand the product from distributors. The cost of cultivating a positive brand image will be largely sink: if unsuccessful, the entrant could hardly [...]

Merger is an obvious method used to obtain a dominant market position. The formation of dominant firms by merger was an important motive for the passage of the Sherman act, which is after all an antitrust act. As we will see in chapter 10, the antitrust laws now place restrictions on such mergers. But there [...]