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The effectiveness of protection through a fixed cost

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  • Jong-Eun Lee

Abstract

This paper identifies to which extent a discriminatory protection through a fixed cost can protect inefficient firms. The effectiveness of a discriminatory device is measured by a critical market size at which a marginal firm can survive.

Suggested Citation

  • Jong-Eun Lee, 2004. "The effectiveness of protection through a fixed cost," Applied Economics Letters, Taylor & Francis Journals, vol. 11(2), pages 127-130.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:2:p:127-130
    DOI: 10.1080/1350485042000200240
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    References listed on IDEAS

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    1. Neumann, Manfred & Weigand, Jurgen & Gross, Alexandra & Munter, Markus Thomas, 2001. "Market size, fixed costs and horizontal concentration," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 823-840, April.
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