This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Cost Reducing Investment, Competition and Industry Dynamics Author info | Abstract | Publisher info | Download info | Related research | Statistics Emmanuel Petrakis () (Universidad Carlos III de Madrid)
Santanu Roy () (Erasmus University)
Additional information is available for the following
registered author(s):
We demonstrate the possibility of shake-out of firms and emergence of inter-firm heterogeneity along the (socially optimal) dynamic equilibrium path of a competitive industry with free entry and exit, even when there is no uncertainty and all firms are ex ante identical with perfect foresight. Atomistic firms with upward sloping marginal cost curves undertake investment in firm- specific cost reduction. They earn negative net profit in early periods, compensated later by strictly positive net profits; no entry occurs after the initial time period. Some firms may exit before others even while other firms earn positive net profit.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number
98-011/1.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: 09 Feb 1998Date of revision:
Handle: RePEc:dgr:uvatin:19980011Contact details of provider: Web page: http://www.tinbergen.nl/
For technical questions regarding this item, or to correct its listing, contact: (Walther Schoonenberg).
Keywords: Cost Reducing Investment ; Industry Dynamics ; Learning ; Competitive Equilibrium ; Shake Out ; Other versions of this item:
Article Petrakis, Emmanuel & Roy, Santanu, 1999.
"Cost-Reducing Investment, Competition, and Industry Dynamics ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 381-401, May.
Find related papers by JEL classification: D41 - Microeconomics - - Market Structure and Pricing - - - Perfect Competition D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Lucas, Robert E, Jr & Prescott, Edward C, 1971.
"Investment Under Uncertainty ,"
Econometrica ,
Econometric Society, vol. 39(5), pages 659-81, September.
[Downloadable!] (restricted)
Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989.
"The Growth and Failure of U.S. Manufacturing Plants ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 104(4), pages 671-98, November.
[Downloadable!] (restricted)
Other versions: Jovanovic, Boyan & MacDonald, Glenn M, 1994.
"The Life Cycle of a Competitive Industry ,"
Journal of Political Economy ,
University of Chicago Press, vol. 102(2), pages 322-47, April.
[Downloadable!] (restricted)
Other versions:
Jovanovic, B. & MacDonald, G., 1993.
"The Life Cycle of a Competitive Industry ,"
Working Papers
93-34, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Boyan Jovanovic & Glenn MacDonald, 1994.
"The Life-Cycle of a Competitive Industry ,"
NBER Working Papers
4441, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Jovanovic, B. & MacDonald, G.M., 1992.
"The Life-Cycle of Competitive Industry ,"
Papers
92-09, Rochester, Business - Financial Research and Policy Studies.
repec:att:wimass:19894 is not listed on IDEAS
Dixit, Avinash K, 1989.
"Entry and Exit Decisions under Uncertainty ,"
Journal of Political Economy ,
University of Chicago Press, vol. 97(3), pages 620-38, June.
[Downloadable!] (restricted)
Other versions: S.A. Lippman & R.P. Rumelt, 1982.
"Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition ,"
Bell Journal of Economics ,
The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
[Downloadable!] (restricted)
Saul Lach & Rafael Rob, 1996.
"R&D, Investment, and Industry Dynamics ,"
Journal of Economics & Management Strategy ,
Blackwell Publishing, vol. 5(2), pages 217-249, 06.
[Downloadable!] (restricted)
Other versions: Pakes, A. & Ericson, R., 1990.
"Empirical Implications Of Alternative Models Of Firm Dynamics ,"
Papers
594, Yale - Economic Growth Center.
Other versions: Dasgupta, Partha & Stiglitz, Joseph, 1980.
"Industrial Structure and the Nature of Innovative Activity ,"
Economic Journal ,
Royal Economic Society, vol. 90(358), pages 266-93, June.
[Downloadable!] (restricted)
Ericson, Richard & Pakes, Ariel, 1995.
"Markov-Perfect Industry Dynamics: A Framework for Empirical Work ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 62(1), pages 53-82, January.
[Downloadable!] (restricted)
Gort, Michael & Klepper, Steven, 1982.
"Time Paths in the Diffusion of Product Innovations ,"
Economic Journal ,
Royal Economic Society, vol. 92(367), pages 630-53, September.
[Downloadable!] (restricted)
Jovanovic, Boyan, 1982.
"Selection and the Evolution of Industry ,"
Econometrica ,
Econometric Society, vol. 50(3), pages 649-70, May.
[Downloadable!] (restricted)
Emmanuel Petrakis & Eric Rasmusen & Santanu Roy, 1997.
"The Learning Curve in a Competitive Industry ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 28(2), pages 248-268, Summer.
[Downloadable!] (restricted)
Other versions:
Petrakis, E. & Rasmusen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
94-004, Indiana - Center for Econometric Model Research.
Emmanuel Petrakis & Eric Rasmusen & Santanu Roy, 1995.
"The Learning Curve in a Competitive Industry ,"
Industrial Organization
9506001, EconWPA.
[Downloadable!] Petrakis, E. & Rasmussen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
9433-a, Erasmus University of Rotterdam - Econometric Institute.
Davis, Steven J & Haltiwanger, John C, 1992.
"Gross Job Creation, Gross Job Destruction, and Employment Reallocation ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 107(3), pages 819-63, August.
[Downloadable!] (restricted)
Other versions:
Steve J. Davis & John Haltiwanger, 1991.
"Gross Job Creation, Gross Job Destruction and Employment Reallocation ,"
NBER Working Papers
3728, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Steve J. Davis & John Haltiwanger, 1991.
"Gross job creation, gross job destruction and employment reallocation ,"
Working Paper Series, Macroeconomic Issues
91-5, Federal Reserve Bank of Chicago.
Davis, S.J. & Haltiwanger, J., 1989.
"Gross Job Creation, Gross Job Destruction And Employment Reallocation ,"
Papers
e-89-33, Stanford - Hoover Institution.
Spence, Michael, 1984.
"Cost Reduction, Competition, and Industry Performance ,"
Econometrica ,
Econometric Society, vol. 52(1), pages 101-21, January.
[Downloadable!] (restricted)
Hopenhayn, Hugo A., 1992.
"Exit, selection, and the value of firms ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 16(3-4), pages 621-653.
[Downloadable!] (restricted)
Hopenhayn, Hugo A, 1992.
"Entry, Exit, and Firm Dynamics in Long Run Equilibrium ,"
Econometrica ,
Econometric Society, vol. 60(5), pages 1127-50, September.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Santanu Roy & Takashi Kamihigashi, 2004.
"Investment, Externalities & Industry Dynamics ,"
Econometric Society 2004 North American Summer Meetings
144, Econometric Society.
[Downloadable!]
Helmut Bester & Emmanuel Petrakis, .
"Wages and Productivity Growth in a Competitive Industry ,"
Papers
009, Departmental Working Papers.
[Downloadable!]
Other versions:
Bester, Helmut & Petrakis, Emmanuel, 1998.
"Wages and Productivity Growth in a Competitive Industry ,"
CEPR Discussion Papers
2031, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Bester, Helmut & Petrakis, Emmanuel, 2003.
"Wages and productivity growth in a competitive industry ,"
Journal of Economic Theory ,
Elsevier, vol. 109(1), pages 52-69, March.
[Downloadable!] (restricted) Aditi Sengupta, 2009.
"Environmental Regulation and Industry Dynamics ,"
Departmental Working Papers
0903, Southern Methodist University, Department of Economics.
[Downloadable!]
David Greenstreet, 2007.
"Exploiting Sequential Learning to Estimate Establishment-Level Productivity Dynamics and Decision Rules ,"
Economics Series Working Papers
345, University of Oxford, Department of Economics.
[Downloadable!]
James Prieger, 2007.
"The Impact of Cost Changes on Industry Entry and Exit ,"
Journal of Economics ,
Springer, vol. 91(3), pages 211-243, July.
[Downloadable!] (restricted)
Jose-Luis Moraga & Jean-Marie Viaene, 2001.
"Trade and Industrial Policy of Transition Economies ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Access and
download statistics Did you know? IDEAS also indexes software components .
This page was last updated on 2009-11-26.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .