Increasing Returns to Scale and Welfare: Ranking the Multiple Deterministic Equilibria

Capacity Utilization under Increasing Returns to Scale

Increasing Returns to Scale, Price Dispersion, and the Distribution of Returns to Innovation

Models of endogenous growth have not been able to account for the variety of empirically observed distributional properties of the returns to innovation, in part, because of the limitations necessarily imposed on competition to cope with increasing returns to scale. Exponential growth, fat tails, Pareto–Levy distributed upper tails, and upper value outliers, are associated with increasing retur...

Indeterminacy, Business Cycles, and Modest Increasing Returns to Scale

In this paper a dynamic model of monopolistic competition with entry and exit has been presented and examined. It is shown that the model displays indeterminacy at modest degrees of increasing returns in cases where the market power in the consumption goods market and in the investment goods market diiers. Furthermore, the model is quite successful in replicating major U.S. business cycle facts...

Administrative rationing and multiple equilibria

In this paper, we introduce non-interest profit/loss sharing (PLS) banks into a three-period overlapping generations model. Two types, (low- and high quality) investments are assumed and capital accumulation and level of output in the steady state is considered. Then, administrative rationing is introduced to the model. It is shown that the level of capital accumulation and output in equilibriu...

Dynamic Influence Maximization Under Increasing Returns to Scale

Influence maximization is a problem of maximizing the aggregate adoption of products, technologies, or even beliefs. Most past algorithms leveraged an assumption of submodularity that captures diminishing returns to scale. While submodularity is natural in many domains, early stages of innovation adoption are often better characterized by convexity, which is evident for renewable technologies, ...