Excess entry in the absence of scale economies
type: Item
instance of: scholarly article
title: Excess entry in the absence of scale economies
zbMATH Open document ID: 1117.91038
author: Arghya Ghosh
author: Souresh Saha
published in: Economic Theory
publication date: 2007-03-06T00:00:00Z
review text: The authors show that with free entry and cost asymmetry amongst firms, excessive entry can occur even in the absence of economies of scale. They consider an entry regulation scenario with (a) strategic interaction between firms and the government where (b) the government is unable to commit -- two features frequently observed especially in developing countries. They consider the case with one efficient and arbitrarily many inefficient firms where the efficient firm can but need not be the leader. If the efficient firm decides to choose its quantity first, they have a Stackelberg game; else the game is Cournot.
reviewed by: Marian Matłoka
Mathematics Subject Classification ID: 91B38
zbMATH DE Number: 5131205
zbMATH Keywords: free entry
zbMATH Keywords: economies of scale
zbMATH Keywords: business-stealing
zbMATH Keywords: excess entry
zbMATH Keywords: Cournot
zbMATH Keywords: Stackelberg
MaRDI profile type: Publication
full work available at URL: s00199-005-0072-4
OpenAlex ID: W2066233382
cites work: Uniqueness of Cournot Equilibrium: New Results from Old Methods
cites work: Entry Barriers and Economic Welfare
DOI: 10.1007/S00199-005-0072-4
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description: scientific article; zbMATH DE number 5131205