Optimal firm growth under the threat of entry
نویسندگان
چکیده
منابع مشابه
Optimal firm growth under the threat of entry
The paper studies the incumbent-entrant problem in a fully dynamic setting. We find that under an open-loop information structure the incumbent anticipates entry by overinvesting, whereas in the Markov perfect equilibrium the incumbent slightly underinvests in the period before the entry. The entry cost level where entry accommodation passes into entry deterrence is lower in the Markov perfect ...
متن کاملOptimal Stabilization Policy with Endogenous Firm Entry
We study optimal monetary stabilization policy in a dynamic stochastic general equilibrium model where money is essential for trade and rm entry is endogenous. We do so when all prices are exible and also when some are sticky. Due to an externality a¤ecting rm entry, the central bank deviates from the Friedman rule. Calibration exercises suggest that the nominal interest rate should have bee...
متن کاملOptimal Monetary Policy and Firm Entry
This paper characterises optimal monetary policy in an economy with endogenous rm entry, a cash-in-advance constraint and preset wages. Firms must make pro ts to cover entry costs; thus the markup on goods prices is e¢cient. However, because leisure is not priced at a markup, the consumption-leisure tradeo¤ is distorted. Consequently, the real wage, hours and production are suboptimally low. D...
متن کاملOptimal firm behavior under environmental constraints
The paper examines the Porter and induced-innovation hypotheses in a firm model where: (i) the firm has a vintage capital technology with two complementary factors, energy and capital ; (ii) scrapping is endogenous; (iii) technological progress is energy-saving and endogenous through purposive R&D investment; (iv) the innovation rate increases with R&D investment and decreases with complexity ;...
متن کاملInferring Conduct under the Threat of Entry: The Case of the Brazilian Cement Industry
This paper demonstrates that when an industry faces potential entry and this threat of entry constrains pre-entry prices, cost and conduct cannot be identi ed from the comparative statics of equilibrium. In such a setting, the identifying assumption behind the well-established technique of relying on exogenous demand perturbations to distinguish empirically between alternative hypotheses of con...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: European Journal of Operational Research
سال: 2015
ISSN: 0377-2217
DOI: 10.1016/j.ejor.2015.04.030