Market size, entry costs and free entry Cournot equilibrium

被引:0
|
作者
Krishnendu Ghosh Dastidar
Sugata Marjit
机构
[1] Jawaharlal Nehru University,
[2] Indian Institute of Foreign Trade,undefined
来源
Journal of Economics | 2022年 / 136卷
关键词
Free entry; Cournot; Output; Firms; L13; D4;
D O I
暂无
中图分类号
学科分类号
摘要
We consider a free entry, symmetric cost, Cournot equilibrium in a homogeneous product market. There is a parameter A which is the index of the “market size” . If a firm decides to enter, it must incur set-up costs of F. We explore the following question: How do the number of firms, individual output and total output in a free entry equilibrium change with an increase in the market size and entry cost? Conventional wisdom suggests that these should increase with A and decrease with F. However, we show this may not be true. We use the implicit function theorem to provide a complete characterization. We also illustrate our results with specific examples.
引用
收藏
页码:97 / 114
页数:17
相关论文
共 50 条