Amir, Rabah; Lambson, Val E. - Centre for Industrial Economics (CIE), Økonomisk Institut - 2003
An infinite-horizon, stochastic model of entry and exit with sunk costs and imperfect competition is constructed …. Simple examples provide insights into: (1) the relationship between sunk costs and industry concentration, (2) entry when … current profits are negative, and (3) the relationship between entry and the length of the product cycle. A subgame perfect …