EconPapers    
Economics at your fingertips  
 

Endogenous Sunk Cost, Scale Economies, and Market Concentration

Yuichiro Matsumoto ()
Additional contact information
Yuichiro Matsumoto: Osaka University

No 18-20, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper offers a theoretical explanation of the recent sales concentration in the U.S. economy. The model is based on in-house R&D, which is involved in scale economies. An R&D subsidy helps the expansion of larger firms and allows them to take higher markups. Thus, it induces a concentrated market structure.

Keywords: Endogenous Sunk Cost; Firm Size Distribution; Heterogenous Firms; Markup; Quality Upgrading (search for similar items in EconPapers)
JEL-codes: D61 L11 L13 L16 O3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com
Date: 2018-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1820.pdf (application/pdf)

Related works:
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:osk:wpaper:1820

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Yuka Sawazaki ().

 
Page updated 2019-05-28
Handle: RePEc:osk:wpaper:1820