Imperfect Competition, Integer Constraints and Industry Dynamics

CORE Discussion Paper No. 2004/42

15 Pages Posted: 25 Oct 2006

See all articles by Rabah Amir

Rabah Amir

University of Arizona - Department of Economics; University of Arizona

Val E. Lambson

Brigham Young University - Department of Economics

Date Written: June 2004

Abstract

Amir and Lambson (2003) developed an infinite-horizon, stochastic model of entry and exit by integer numbers of firms facing sunk costs and uncertain market conditions. Here, as examples of the model's usefulness, special cases are applied to the following three issues: (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.

Keywords: entry and exit, dynamic games, integer constraints

JEL Classification: C73, D43, L13

Suggested Citation

Amir, Rabah and Lambson, Val Eugene, Imperfect Competition, Integer Constraints and Industry Dynamics (June 2004). CORE Discussion Paper No. 2004/42. Available at SSRN: https://ssrn.com/abstract=939530 or http://dx.doi.org/10.2139/ssrn.939530

Rabah Amir (Contact Author)

University of Arizona - Department of Economics ( email )

Tucson, AZ 85721
United States

University of Arizona ( email )

Department of History
Tucson, AZ 85721
United States

Val Eugene Lambson

Brigham Young University - Department of Economics ( email )

130 Faculty Office Bldg.
Provo, UT 84602-2363
United States
801-378-7765 (Phone)

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