Imperfect competition, integer constraints and industry dynamics

Rabah AMIR and Val Eugene Lambson

No 2004042, CORE Discussion Papers from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

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' usefulness, special cases are applied to the following three s 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 (search for similar items in EconPapers)
JEL-codes: C73 D43 L13 (search for similar items in EconPapers)
Date: 2004-06-01
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Journal Article: Imperfect competition, integer constraints and industry dynamics (2007)
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