Industry profits and free entry in input markets

Noriaki Matsushima

No 2005-20, Discussion Papers from Kobe University, Graduate School of Business Administration

Abstract: When upstream firms compete in quantity and freely enter the input market, competition among downstream firms reduces the input price (the marginal cost of downstream firms). The industry profits of downstream firms competing in quantity can increase with the number of downstream firms.

Keywords: Cournot competition; input markets; free entry; profits (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2005-07
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Citations: View citations in EconPapers (2)

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https://www.b.kobe-u.ac.jp/papers_files/2005_20.pdf First version, 2005 (application/pdf)

Related works:
Journal Article: Industry profits and free entry in input markets (2006)
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