Free Entry does not Imply Zero Profits

Hurkens, Sjaak and Vulkan, Nir (2003) Free Entry does not Imply Zero Profits. Economics Letters, 81 (3). pp. 285-290.

Abstract

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.

Item Type: Article
Keywords: Entry deterrence; Information acquisition; finance
Subject(s): Complexity
Entrepreneurship
Finance
Centre: CABDyN Complexity Centre
Entrepreneurship Centre
Date Deposited: 20 Feb 2012 17:39
Last Modified: 27 Feb 2017 11:51
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/2964

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