IDEAS home Printed from https://ideas.repec.org/p/pie/dsedps/2006-57.html
   My bibliography  Save this paper

Firms' Entry, Imperfect Competition and Regulation

Author

Listed:
  • Lorenzo Corsini

Abstract

In this paper we try to build a macro model of imperfect competition where the number of firms is endogenous. In particular, the product market works as as a Cournot oligopoly, while in the labour markets the determination of wages is influenced by the presence of unions. Moreover, the number of firms and its equilibrium level are determined through a costly entry process, so that firms enter the market as long as expected profits are enough to cover entry costs. This mechanism allows to determine the equilibrium number of firms and to study its properties. Once we have determined this, we may examine the effects of imperfect competition in both the short and long run and we can evaluate the consequences of (de)regulation policies on both the time horizons.

Suggested Citation

  • Lorenzo Corsini, 2006. "Firms' Entry, Imperfect Competition and Regulation," Discussion Papers 2006/57, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  • Handle: RePEc:pie:dsedps:2006/57
    as

    Download full text from publisher

    File URL: http://www.ec.unipi.it/documents/Ricerca/papers/2006-57.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Akos Dombi, 2006. "Scale Effects in Idea-Based Growth Models: a Critical Survey," Discussion Papers 2006/60, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. Luciano Fanti & Piero Manfredi, 2003. "Progressive Income Taxation and Economic Cycles: a Multiplier-Accelerator Model," Discussion Papers 2003/11, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Tommaso Luzzati, 2008. "Leggere Karl William Kapp per una visione unitaria di economia, societa' e ambiente," Discussion Papers 2005/56, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Alga Foschi, "undated". "The maritime container transport structure in the mediterranean and italy," Discussion Papers 2003/24, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    5. Andrea Mario Lavezzi, "undated". "Complex Dynamics in a Simple Model of Economic Specialization," Discussion Papers 2003/2, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Mario Morroni, 2006. "Innovative activity, substantive uncertainty and the theory of the firm," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2006(3), pages 47-75.
    7. Paolo Mariti, 2004. "Costi di transazione e sviluppi dell'economia d'impresa," Discussion Papers 2004/30, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    8. Luciano Fanti & Piero Manfredi, 2003. "Neo-classical labour market dynamics, chaos and the Phillips curve," Discussion Papers 2003/21, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    9. Luciano fanti & Luca Spataro, 2004. "The optimal fiscal policy in a OLG model with endogenous fertility," Discussion Papers 2004/36, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    10. Davide Fiaschi, 2003. "Fiscal policy and welfare in an endogenous growth model with heterogeneous endowments," Discussion Papers 2003/18, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    11. Luciano Fanti, 2003. "Notes on Keynesian models of recession and depression," Discussion Papers 2003/19, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    12. Gaetano Alfredo Minerva, "undated". "Location and Horizontal Differentiation under Duopoly with Marshallian Externalities," Discussion Papers 2003/10, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    13. Pompeo Della Posta, 2003. "Optimal Monetary Instruments and Policy Games Reconsidered," Discussion Papers 2003/12, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    14. Tommaso Luzzati & Alessandro Franco, 2004. "Idrogeno, fonti rinnovabili ed eco-efficienza. Quale approccio alla questione energetica?," Discussion Papers 2004/45, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    15. Luciano Fanti, 2003. "Technological diffusion and cyclical growth," Discussion Papers 2003/20, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    16. Francesco Drago, 2005. "Redistributing opportunities in a job search model: the role of self-confidence and social norms," Chapters,in: Innovation, Unemployment and Policy in the Theories of Growth and Distribution, chapter 9 Edward Elgar Publishing.
    17. Luciano Fanti & Luca Spataro, 2008. "Poverty traps and intergenerational transfers," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(6), pages 693-711, December.
    18. Lorenzo Corsini & Marco Guerrazzi, 2004. "Searching for Long Run Equilibrium Relationships in the Italian Labour Market: a Cointegrated VAR Approach," Discussion Papers 2004/43, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    19. Davide Fiaschi & Andrea Mario Lavezzi, "undated". "On the Determinants of Growth Volatility: a Nonparametric Approach," Discussion Papers 2003/25, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    20. Luciano Fanti, 2003. "The growth cycle and labour contract length," Discussion Papers 2003/17, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    21. Luciano fanti & Luca Spataro, 2004. "Dynamic inefficiency, public debt and endogenous fertility," Discussion Papers 2004/38, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    22. Paolo Mariti, 2003. "The BC and AC Economics of the Firm," Discussion Papers 2003/4, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    23. Andrea Mario Lavezzi & Nicola Meccheri, 2004. "Job Contact Networks, Inequality and Aggregate Output," Discussion Papers 2004/42, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    24. Domenico Delli Gatti & Mauro Gallegati & Alberto Russo, 2004. "Technological Innovation, Financial Fragility and Complex Dynamics," Discussion Papers 2004/31, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    25. Fiaschi, Davide & Lavezzi, Andrea Mario, 2007. "Nonlinear economic growth: Some theory and cross-country evidence," Journal of Development Economics, Elsevier, vol. 84(1), pages 271-290, September.
    26. Francesco Drago, 2004. "Redistributing opportunities in a job search model: the role of self-confidence and social norms," Discussion Papers 2004/32, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    27. Mariti Paolo, 2004. "Costi di transazione e sviluppi dell'economia d'impresa," L'industria, Società editrice il Mulino, issue 4, pages 755-782.
    28. Alga Foschi, 2004. "Politiques communautaires de soutien au short sea shipping (SSS)," Discussion Papers 2004/48, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    29. Marco Guerrazzi, 2004. "Intertemporal Preferences, Distributive Shares, and Local Dynamics," Discussion Papers 2004/49, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    30. Carlo Casarosa & Luca Spataro, 2005. "Propensione aggregata al risparmio, rapporto ricchezza-reddito e distribuzione della ricchezza nel modello del ciclo di vita "egualitario": il ruolo delle variabili demografiche," Discussion Papers 2005/51, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    31. Alga Foschi, 2004. "The coast port industry in the USA: a key factor in the process of economic growth," Discussion Papers 2004/46, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    32. Giuseppe Freni & Fausto Gozzi & Neri Salvadori, 2004. "Existence of Optimal Strategies in linear Multisector Models," Discussion Papers 2004/29, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    33. Andrea Mario Lavezzi & Nicola Meccheri, 2005. "Job contact networks, inequality and aggregate output," Chapters,in: Innovation, Unemployment and Policy in the Theories of Growth and Distribution, chapter 7 Edward Elgar Publishing.
    34. Luca Spataro, "undated". "Social Security And Retirement Decisions In Italy," Discussion Papers 2003/1, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    35. Alga D. Foschi, 2006. "La concentrazione industriale per i sistemi di trasporto sostenibile," Discussion Papers 2006/64, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    36. Alga Foschi, 2005. "Lo shipping, la cantieristica ed i porti nellindustria marittima," Discussion Papers 2005/53, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    37. Luciano fanti, 2004. "Neo-classical labour market dynamics and uniform expectations: chaos and the resurrection of the Phillips Curve," Discussion Papers 2004/34, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    38. Giuseppe Freni & Fausto Gozzi & Neri Salvadori, 2006. "Existence of optimal strategies in linear multisector models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(1), pages 25-48, September.
    39. Luciano Fanti, 2003. "Fiscal policy and tax collection lags: stability, cycles and chaos," Discussion Papers 2003/15, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    40. Nicola Meccheri, 2007. "Wage behaviour and unemployment in Keynes' and New Keynesians' views: A comparison," The European Journal of the History of Economic Thought, Taylor & Francis Journals, pages 701-724.
    41. Sanchez-Marcos, Virginia & Sanchez-Martin, Alfonso R., 2006. "Can social security be welfare improving when there is demographic uncertainty?," Journal of Economic Dynamics and Control, Elsevier, pages 1615-1646.
    42. Nicola Meccheri, 2007. "Wage behaviour and unemployment in Keynes' and New Keynesians' views: A comparison," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 14(4), pages 701-724.
    43. Valeria Pinchera, 2004. "Consumo d'arte a Firenze in eta' moderna. Le collezioni Martelli, Riccardi e Salviati nel XVII e XVIII secolo," Discussion Papers 2004/50, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    44. Tamara Fioroni, 2006. "Life Expectancy, Health Spending and Saving," Discussion Papers 2006/62, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    45. Paolo Di Martino, 2004. "Was the Bank of England responsible for inflation during the Napoleonic wars (1897-1815)? Some preliminary evidence from old data and new econometric techniques," Discussion Papers 2004/33, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    46. Luciano fanti & Luca Spataro, 2004. "Welfare implications of national debt in a OLG model with endogenous fertility," Discussion Papers 2004/35, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    47. Alga D. Foschi & Xavier Peraldi & Michel Rombaldi, 2005. "Inter-island Links in Mediterranean Short Sea Shipping Networks," Discussion Papers 2005/52, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    48. Giuseppe Conti, 2003. "Institutions locales et banques dans la formation et le d_veloppement des districts industriels en Italie," Discussion Papers 2003/6, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    49. Nicola Meccheri, 2003. "Performance-related-pay nel pubblico impiego: un'analisi economica," Discussion Papers 2003/3, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    50. Piero Manfredi & Luciano Fanti, 2004. "Age distribution and age heterogeneities in economic profiles as sources of conflict between efficiency and equity in the Solow-Stiglitz framework," Discussion Papers 2004/37, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    51. Alga D. Foschi, 2006. "La concentrazione industriale per i sistemi di trasporto sostenibile: un caso di successo nel Mediterraneo orientale," Discussion Papers 2006/63, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    52. Fiaschi, Davide & Lavezzi, Andrea Mario, 2007. "Nonlinear economic growth: Some theory and cross-country evidence," Journal of Development Economics, Elsevier, pages 271-290.
    53. Fabrizio Bulckaen & Marco Stampini, 2004. "Commodity Tax Reforms In A Many Consumers Economy: A Viable Decision-Making Procedure," Discussion Papers 2004/44, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    54. Alga Foschi, 2004. "A cost-transit time choice model: monomodality vs. intermodality," Discussion Papers 2004/47, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    55. Giuseppe Freni & Fausto Gozzi & Neri Salvadori, 2006. "Existence of optimal strategies in linear multisector models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), pages 25-48.
    56. Mario Morroni, 2006. "Innovative activity, substantive uncertainty and the theory of the firm," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, pages 47-75.
    57. Luciano Fanti & Luca Spataro, 2004. "Endogenous labor supply and Diamond's (1965) model: a reconsideration of the debt role," Discussion Papers 2003/22, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    58. Marco Guerrazzi, 2005. "Notes on Continuous Dynamic Models: the Benhabib-Farmer Condition for Indeterminacy," Discussion Papers 2005/54, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fanti, Luciano & Gori, Luca, 2010. "Child policy solutions for the unemployment problem," Economics Letters, Elsevier, vol. 109(3), pages 147-149, December.
    2. Luciano Fanti & Luca Gori, 2009. "Longevity, fertility and PAYG pension systems sustainability," Discussion Papers 2009/77, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Luciano Fanti & Luca Gori, 2012. "Endogenous Lifetime in an Overlapping-Generations Small Open Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(2), pages 121-152, June.
    4. Luciano Fanti & Luca Gori, 2011. "On economic growth and minimum wages," Journal of Economics, Springer, vol. 103(1), pages 59-82, May.
    5. Manuela Gussoni - Andrea Mangani, 2009. "The impact of public funding for innovation on firms' R&D investments: Do R&D cooperation and appropriability matter?," Discussion Papers 2009/90, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Lorenzo Corsini & Elisabetta Olivieri, 2008. "Technological Change and the Wage Differential between Skilled and Unskilled Workers: Evidence from Italy," Discussion Papers 2008/73, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    7. Luca Gori, 2009. "Endogenous fertility, family policy and multiple equilibria," Discussion Papers 2009/79, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    8. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    9. Luciano Fanti & Luca Gori, 2008. "PAYG pensions and economic cycles: exogenous versus endogenous fertility," Discussion Papers 2008/75, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pie:dsedps:2006/57. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/dspisit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.