When the threat of entry by followers includes cooperative firms, the maximum fixed cost that a profit maximizing leader can endure is endogenous. The aggressive strategy required for entry deterrence curtails the leader’s expected profit and can discourage its initial entry. In such circumstances a cooperative firm may yet be viable, despite having a cost handicap and no first-mover advantage.
Hueth, Brent M. and Moschini, GianCarlo, "Endogenous Market Structure and the Cooperative Firm" (2014). CARD Working Papers. 566.