QIU, LARRY D.; CHENG, LEONARD K.; FUNG, MICHAEL K. - In: Contemporary Economic Policy 25 (2007) 2, pp. 156-169
"When fixed, sunk investment costs are high, firms may not have sufficient incentive to enter the market unless future entry is constrained. In this case, the government faces a dilemma between a full commitment and noncommitment of restricted future entry. A way out is to consider a commitment...