Journal article
Imperfect competition, integer constraints and industry dynamics
International journal of industrial organization, Vol.25(2), pp.261-274
04/01/2007
DOI: 10.1016/j.ijindorg.2005.12.004
Abstract
Amir and Lambson (Amir, R. and V. E. Lambson (2003), Entry, Exit, and Imperfect Competition in the Long Run, Journal of Economic Theory, 110, 191–203) developed a general infinite-horizon, stochastic model of endogenous entry and exit by integer numbers of firms facing sunk costs and uncertain market conditions. Here a more tractable special case is presented to show how the model can provide a unifying framework for issues that arise in dynamic oligopolies. Examples of these issues include: (1) the relationship between sunk costs and industry concentration, (2) entry when current profits are negative, and (3) the relationship between entry and the length of the product cycle.
Details
- Title: Subtitle
- Imperfect competition, integer constraints and industry dynamics
- Creators
- Rabah Amir - University of ArizonaVal E. Lambson - Brigham Young University
- Resource Type
- Journal article
- Publication Details
- International journal of industrial organization, Vol.25(2), pp.261-274
- DOI
- 10.1016/j.ijindorg.2005.12.004
- ISSN
- 0167-7187
- eISSN
- 1873-7986
- Publisher
- Elsevier B.V
- Language
- English
- Date published
- 04/01/2007
- Academic Unit
- Economics
- Record Identifier
- 9984380552402771
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