Arbeitspapier
Cost Reducing Investment, Competition and Industry Dynamics
We demonstrate the possibility of shake-out of firms and emergence of inter-firmheterogeneity along the (socially optimal) dynamic equilibrium path of a competitive industry with freeentry and exit, even when there is no uncertainty and all firms are ex ante identical with perfectforesight. 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 strictlypositive net profits; no entry occurs after the initial time period. Some firms may exit before others evenwhile other firms earn positive net profit.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. 98-011/1
- Klassifikation
-
Wirtschaft
Market Structure, Pricing, and Design: Perfect Competition
Production, Pricing, and Market Structure; Size Distribution of Firms
Innovation and Invention: Processes and Incentives
- Thema
-
Cost Reducing Investment
Industry Dynamics
Learning
Competitive Equilibrium
Shake Out
Investitionsentscheidung
Rationalisierung
Wettbewerb
Industrie
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Petrakis, Emmanuel
Roy, Santanu
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
1998
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Petrakis, Emmanuel
- Roy, Santanu
- Tinbergen Institute
Entstanden
- 1998
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