Entry, exit, and imperfect competition in the long run.
An infinite-horizon, stochastic model of entry and exit with sunk cost and imperfect competition is constrained. A subgame perfect Nash equilibrium for the general dynamic stochastic game is shown to exist as a limit of finite-horizon equilibria. It tends to exhibit an excessive entry and insufficient exit relative to a social optimum.
scientific article; zbMATH DE number 1957022