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The theory of large-scale entry into an industry is made complicated by its game-theoretic aspects. Even in the simplest case of one established firm facing one prospective entrant, there are some subtle strategic interactions. The established firm's pre-entry decisions can influence the...
Persistent link: https://www.econbiz.de/10005368678
Most propositions on the gains from trade with many consumers consider only lump-sum transfers as redistributive tools. It is widely believed that nothing can be said unless such transfers are possible. In this note we show that such a belief, and the consequent pessimism concerning the...
Persistent link: https://www.econbiz.de/10005146832
Since the pioneering study of Harberger, monopoly welfare loss has received much attention in the literature. However, no attempt has been made explicitly to incorporate oligopolistic interaction. In this paper we postulate a specific social welfare function and solve directly for the level of...
Persistent link: https://www.econbiz.de/10005146842
Hartwick’s rule of investigating resource rents in an economy with producible capital and exhaustible resources becomes, in a general model of heterogeneous stocks, a rule whereby the total value of net investment (resource depletion counting negative) is equal to zero. It is shown that...
Persistent link: https://www.econbiz.de/10004999401