![Published Research](https://mackinstitute.wharton.upenn.edu/wp-content/uploads/2016/06/Published-Research-150x100.png)
This study investigates incumbent responses to a main rival’s exit. We argue that long‐time rivals have developed an equilibrium by offering a mix of overlapping and unique products and by choosing geographic proximity to each other. A rival’s exit, however, disrupts this equilibrium and motivates surviving firms to expand in both product and geographic spaces to seek a new equilibrium. …Read More