A Report on the Actuarial, Marketing, and Legal Analyses of the CLASS Program. V. Competitor Responses to Entry: What Does the Literature Say?
CLASS insurance will represent a major new entrant into the LTCI market. It is therefore important to anticipate how incumbent sellers will respond. There is a large theoretical literature and substantially smaller empirical literature on incumbent responses to entry. Thomas (1999) reviews the literature and provides some evidence from the breakfa