ABSTRACT
The bone of contention was the pricing policy chosen by oligopolistic firms facing the threat of external firm's entry. One of the analytical outcomes of the above literature was the static limit-pricing model with symmetric information, also referred to as the BainSylos Labini-Modigliani model. According to Gilbert, a basic assumption in the model concerned is that entrants expect that established firms will not accommodate entry by reducing their output. Rancan has extensively investigated the analytical and methodological differences between Modiglianis and Sylos Labinis approaches to oligopoly theory. Modigliani's remark is worth stressing since the issue of the indeterminacy of equilibrium, together with the problem of formalising the conjectures of an oligopolistic firm about its rival's reactions, was the crux of classical oligopoly models, before the advent of game theory. The Sylos Postulate is one of the main analytical pillars on which Modigliani built his 1958 interpretation of Sylos Labinis Oligopolio e Progresso Tecnico.
