Sunk Costs, Accommodation, and the Welfare Effects of Entry.

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.

MoreLess

Year of publication:	1997
Authors:	Sachbar, J.H. ; Peterson, B.C. ; Hwang, I.
Institutions:	Business Law and Economics Center, Olin School of Business
Subject:	ENTERPRISES \| SUNK COSTS

Check Google Scholar |

More access options

In German libraries (KVK)

I need help

More details

Series:	Washington University.
Type of publication:	Book / Working Paper
Notes:	22 pages
Classification:	D60 - Welfare Economics. General ; K20 - Regulation and Business Law. General ; L10 - Market Structure, Firm Strategy, and Market Performance. General ; L40 - Antitrust Policy. General ; L50 - Regulation and Industrial Policy. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005661150