Nash equilibria in entry game ■Two Nash equilibria In,Accommodate >Out,Fight Does the second Nash equilibrium make sense? Non-creditable threats Limitation to the normal form representation Incumbent Accommodate Fight In 2,1 0， 0 Challenger Out 1, 2 1,2 21Nash equilibria in entry game Incumbent Accommodate Fight Challenger In 2 , 1 0 , 0 Out 1 , 2 1 , 2 21 ◼ Two Nash equilibria ➢ ( In, Accommodate ) ➢ ( Out, Fight ) ◼ Does the second Nash equilibrium make sense? ◼ Non-creditable threats ◼ Limitation to the normal form representation