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! ]
Entry, Exit, and Imperfect Competition in the Long Run Author info | Abstract | Publisher info | Download info | Related research | Statistics Rabah Amir (CORE)
Val E. Lambson (Brigham Young University, Provo)
Additional information is available for the following
registered author(s):
An infinite-horizon, stochastic model of entry and exit with sunk costs and imperfect competition is constructed. Simple examples provide insights into: (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. A subgame perfect Nash equilibrium for the general dynamic stochastic game is shown to exist as a limit of finite-horizon equilibria. This equilibrium has a relatively simple structure characterized by two numbers per finite history. Under very general conditions, it tends to exhibit excessive entry and insufficient exit relative to a social optimum.
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 University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number
2003-03.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length: 31 pages
Date of creation: Sep 2003Date of revision:
Handle: RePEc:kud:kuieci:2003-03Contact details of provider: Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark Phone: (0045) 35 32 30 54 Fax: +45 35 32 30 00 Web page: http://www.econ.ku.dk/cie/ More information through EDIRC
Order Information: Email:
For technical questions regarding this item, or to correct its listing, contact: (Henriette Aabo Hansen).
Keywords: entry ; exit ; dynamic games ; integer constraints ; Other versions of this item:
Article Amir, Rabah & Lambson, Val E., 2003.
"Entry, exit, and imperfect competition in the long run ,"
Journal of Economic Theory ,
Elsevier, vol. 110(1), pages 191-203, May.
[Downloadable!] (restricted) Paper AMIR, Rabah & LAMBSON, Val, 2003.
"Entry, exit, and imperfect competition in the long run ,"
CORE Discussion Papers
2003066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!] R Amir & V E Lambson, 2003.
"Entry, Exit, and Imperfect Competition in the Long Run ,"
The School of Economics Discussion Paper Series
0315, Economics, The University of Manchester.
[Downloadable!] Find related papers by JEL classification: C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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.: Dewey, Donald, 1976.
"Industrial Concentration and the Rate of Profit: Some Neglected Theory ,"
Journal of Law & Economics ,
University of Chicago Press, vol. 19(1), pages 67-78, April.
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: Fudenberg, Drew & Tirole, Jean, 1987.
"Understanding Rent Dissipation: On the Use of Game Theory in Industrial Organization ,"
American Economic Review ,
American Economic Association, vol. 77(2), pages 176-83, May.
[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)
Rabah Amir & Val E. Lambson, 1998.
"On the Effects of Entry in Cournot Markets ,"
CIE Discussion Papers
1998-06, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
Other versions:
AMIR, Rabah & LAMBSON, Val, 1999.
"On the effects of entry in Cournot markets ,"
CORE Discussion Papers
1999059, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!] Rabah Amir, 2000.
"On the Effects of Entry in Cournot Markets ,"
Econometric Society World Congress 2000 Contributed Papers
1475, Econometric Society.
[Downloadable!] Amir, Rabah & Lambson, Val E, 2000.
"On the Effects of Entry in Cournot Markets ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 67(2), pages 235-54, April.
David Levhari & Leonard J. Mirman, 1980.
"The Great Fish War: An Example Using a Dynamic Cournot-Nash Solution ,"
Bell Journal of Economics ,
The RAND Corporation, vol. 11(1), pages 322-334, Spring.
[Downloadable!] (restricted)
Jovanovic, Boyan, 1982.
"Selection and the Evolution of Industry ,"
Econometrica ,
Econometric Society, vol. 50(3), pages 649-70, May.
[Downloadable!] (restricted)
Fudenberg, Drew & Tirole, Jean, 1985.
"Preemption and Rent Equilization in the Adoption of New Technology ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 52(3), pages 383-401, July.
[Downloadable!] (restricted)
Lambson, Val Eugene, 1987.
"Is the Concentration-Profit Correlation Partly an Artifact of Lumpy Technology? ,"
American Economic Review ,
American Economic Association, vol. 77(4), pages 731-33, September.
[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)
repec:att:wimass:19894 is not listed on IDEAS
Lambson, Val Eugene, 1992.
"Competitive Profits in the Long Run ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 59(1), pages 125-42, January.
[Downloadable!] (restricted)
Amir, Rabah, 1996.
"Continuous Stochastic Games of Capital Accumulation with Convex Transitions ,"
Games and Economic Behavior ,
Elsevier, vol. 15(2), pages 111-131, August.
[Downloadable!] (restricted)
B. Douglas Bernheim, 1984.
"Strategic Deterrence of Sequential Entry into an Industry ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 15(1), pages 1-11, Spring.
[Downloadable!] (restricted)
N. Gregory Mankiw & Michael D. Whinston, 1986.
"Free Entry and Social Inefficiency ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 17(1), pages 48-58, Spring.
[Downloadable!] (restricted)
Klepper, Steven, 1996.
"Entry, Exit, Growth, and Innovation over the Product Life Cycle ,"
American Economic Review ,
American Economic Association, vol. 86(3), pages 562-83, June.
[Downloadable!] (restricted)
Rob, Rafael, 1991.
"Learning and Capacity Expansion under Demand Uncertainty ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 58(4), pages 655-75, July.
[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.)
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)
Michele Moretto, 2007.
"Competition and Irreversible Investments under Uncertainty ,"
"Marco Fanno" Working Papers
0058, Dipartimento di Scienze Economiche "Marco Fanno".
[Downloadable!]
Francisco Ruiz-Aliseda, 2003.
"Strategic Commitment Versus Flexibility in a Duopoly with Entry and Exit ,"
Discussion Papers
1379, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!]
Frank H. Page & Myrna H. Wooders, 2009.
"Endogenous Network Dynamics ,"
Working Papers
2009.28, Fondazione Eni Enrico Mattei.
[Downloadable!]
Other versions: Prieger, James, 2005.
"The Impact of Cost Changes on Industry Dynamics ,"
Working Papers
05-1, University of California at Davis, Department of Economics.
[Downloadable!]
AMIR, Rabah, 2001.
"Stochastic games in economics and related fields: an overview ,"
CORE Discussion Papers
2001060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!]
AMIR, Rabah & LAMBSON, Val E., 2004.
"Imperfect competition, integer constraints and industry dynamics ,"
CORE Discussion Papers
2004042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!]
Other versions:
Access and
download statistics Did you know? Authors registered on the RePEc Author Service receive monthly emails with details about downloads and abstract views of their works.
This page was last updated on 2009-12-2.
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 .