Sunk Costs, Accommodation, and the Welfare Effects of Entry

J.H. Sachbar, B.C. Peterson and I. Hwang
Authors registered in the RePEc Author Service: Bruce Clayton Petersen

Washington University from Business, Law and Economics Center, John M. Olin School of Business, Washington University

Abstract: Although economists usually support the unrestricted entry of firms into an industry, entry may lower welfare if there are setup costs or if entrants have a cost disadvantage. We consider the welfare effects of entry within a standard Cornot model where some of an incumbent firm's costs are sunk.

Keywords: ENTERPRISES; SUNK COSTS (search for similar items in EconPapers)
JEL-codes: D60 K20 L10 L40 L50 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Sunk Costs, Accommodation, and the Welfare Effects of Entry (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:wablec:97-03

Access Statistics for this paper

More papers in Washington University from Business, Law and Economics Center, John M. Olin School of Business, Washington University Business, Law and Economics Center, John M. Olin School of Business, Washington University. Campus Box 1133, One Brookings Drive, St. Louis MO 63130-4899.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().