Hurkens, Sjaak and Vulkan, Nir (2003) Free Entry does not Imply Zero Profits. Economics Letters, 81 (3). pp. 285-290.
Traditional economic wisdom says that free entry in a market will drive profits down to zero. This paper shows that profits may remain bounded away from zero when firms have to make a negligible small investment to learn the demand.
|Keywords:||Entry deterrence; Information acquisition; finance|
|Centre:||CABDyN Complexity Centre
|Date Deposited:||20 Feb 2012 17:39|
|Last Modified:||27 Feb 2017 11:51|
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