This paper studies the behavior of buyers confronting an incumbent
monopolist and a potential market entrant in a repeated trade
situation. In the experiment, buyers have two possibilities to
demand lower prices in future trade periods. First, they can
withhold demand. Second, they can voluntarily pay a higher price
to the entrant in order to encourage future re-entry. Both these
forms of buyer behavior occur in the experiment. They are less
frequent when the number of buyers is large as opposed to small.
A control treatment tests to what extent such behavior can be
attributed to strategic motives.