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This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics. The benefit of our model is twofold. First, to discriminate between entrants’ role of performing the entrepreneurial function of creating disequilibrium and the conventional...
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"This highly original book develops a systematic zero-net-profit comparative statics theory of the firm that challenges … many widely held views in microeconomics. It builds a bridge between the marginalist long-run theory of the firm and … Sraffian theory to create a unified theoretical framework that explains how firms react to exogenous shocks resulting in new …
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