Liu, Lin; Wang, X. Henry - In: Journal of Institutional and Theoretical Economics (JITE) 169 (2013) 2, pp. 304-319
The literature has established two kinds of entry bias in imperfectly competitive markets. First, free entry may lead to excessive entry relative to the socially optimal level. Second, free entry may lead to the wrong technology (type of firm) in the market compared to the socially optimal...