"Brand proliferation" in an oligopolistic industry
◦ will generally reduce the expected market share of new entrants to the industry.
◦ allows firms to cooperate to maximize their joint profits.
◦ allows new entrants to the industry to gain significant market share.
◦ allows easier entry to a new entrant with small sales.
◦ can shift the average total cost curve down and raise the overall minimum scale of operation.