disequilibrium but little empirical research has examined firm entry and exit in this context. We redress this by modelling the … interrelationship between firm entry and exit in disequilibrium. Introducing a new methodology we investigate whether this … new-firm entry) while in overshoots competition induced by new firms (in particular strong displacement) helps restore …

This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics …, to discriminate between three aspects of industry dynamics: the effect of entry and exit on market equilibrium, duration … simultaneous equilibrium model of profits, entry and exit. We find that indeed entrants play an entrepreneurial function causing …

reduces the competitive pressure incumbents face which depresses productivity. Contrarily net entry strengthens competition … that focuses on two industrial features (1) slow firm entry/exit and (2) firm pricing that depends on the number of … tractable DGE model of endogenous firm entry/exit and endogenous markups. …

differentiation, auctions, regulation and entry. …