Piscitelli, Laura; Grinfeld, Michael; Lamba, Harbir; … - In: Applied Economics Letters 6 (1999) 9, pp. 569-572
This note extends the Dixit-Pindyck analysis of investment, in the form of market entry and exit under sunk costs, to the case of heterogeneous sunk costs. The implication is that the market displays full hysteresis, in the form of remanence and dependence on the nondominated extremum values of...