Author: Lalit ManralPublisher:
ISBN:
Category :
Languages : en
Pages : 462
Book Description
Towards a Theory of Endogenous Market Structure in Strategy
Author: Lalit ManralThe Theory of Endogenous Market Structures
Author: Federico EtroPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Most market structures are neither perfectly or monopolistically competitive: they are characterized by a few large firms that are engaged in strategic interactions in their production and investment decisions and whose number is endogenous. The theory of endogenous market structures analyzes markets in partial and general equilibrium where strategies affect entry and entry affects strategies, and exogenous primitive conditions on technology and preferences affect the equilibrium. We discuss applications to industrial organization, international trade, business cycle theory, international finance, growth and implications for welfare and for competition, trade, fiscal and monetary policy.
Rethinking Macroeconomics with Endogenous Market Structure
Author: Marco MazzoliPublisher: Cambridge University Press
ISBN: 1108482600
Category : Business & Economics
Languages : en
Pages : 251
Book Description
"The last decade has seen a lively debate in macroeconomics, with an increasing criticism on the model that seemed to be dominant in literature since the end of the 1990's, the Dynamic Stochastic General Equilibrium (DSGE, hereafter) and, consequently, the birth of some new theoretical approaches and methodologies"--
A General Theory of Endogenous Market Structures
Author: Paolo BertolettiPublisher:
ISBN:
Category :
Languages : en
Pages : 35
Book Description
We provide a unified approach to imperfect (monopolistic, Bertrand and Cournot) competition equilibria with demand functions derived from symmetric preferences over a large but finite number of goods. The equilibrium markups depend on the Morishima Elasticity of Substitution/Complementarity between goods, and can be derived directly from the utility functions and ranked unambiguously. We characterize the endogenous market structures, their dependence on market size, income and firms' productivity and compare them with the optimal allocations. Finally, we apply our results to the case of preferences such as Generalized Leontief, Generalized linear and Generalized quadratic that we introduce in the literature on imperfect competition.
To Know Or Not To Know
Author: Roberto CelliniPublisher:
ISBN:
Category :
Languages : en
Pages : 27
Book Description
We model an industry in which a discrete number of firms choose the output of their differentiated products deciding whether or not to consider the impact of their decisions on aggregate output. We show that two threshold numbers of firms exist such that: below the lower one there is a unique equilibrium in which all firms consider their aggregate impact as in standard oligopoly; above the higher threshold there is a unique equilibrium in which all firms disregard that impact as in standard monopolistic competition; between the two thresholds there are two equilibria, one in which all firms consider their aggregate impact and the other in which they do not. We then show that our model of 'strategic inattention' is isomorphic to a model of 'strategic delegation' with managerial compensation based on relative profit performance.
Strategy and Market Structure
Author: Martin ShubikPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 387
Book Description
Rethinking Macroeconomics with Endogenous Market Structure
Author: Marco MazzoliPublisher: Cambridge University Press
ISBN: 1108693067
Category : Business & Economics
Languages : en
Pages : 251
Book Description
The birth and death of firms is one of the main features of the business cycle. Yet mainstream DGSE macroeconomic models mostly ignore this phenomenon, thereby excluding any potential impact of economic policy on the probability of the birth and death of firms. Those DGSE models that do allow for this phenomenon do so at the cost of drastic simplifications, which effectively rule out causal links between the strategic interaction of industrial firms and the macroeconomy. This innovative new book develops a bottom-up, agent-based framework that shows how strategic interactions at the level of oligopolistic firms, and even at the level of individuals, affect entire industrial sectors and the equilibrium of the macroeconomy. It will appeal to academic researchers and graduate students working in computational economics, agent-based modelling and econophysics, as well as mainstream economists interested in learning more about alternatives to DGSE models in macroeconomics.
The Theory of the Firm
Author: Daniel F. SpulberPublisher: Cambridge University Press
ISBN: 0521517389
Category : Business & Economics
Languages : en
Pages : 542
Book Description
The Theory of the Firm presents an innovative general analysis of the economics of the firm.
Endogenous Market Structure and Foreign
Author: James R. MarkusenEndogenous Market Structures and Strategic Trade Policy
Author: Federico EtroPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
I characterize the optimal export promoting policy for international markets whose structure is endogenous. Contrary to the ambiguous results of strategic trade policy for duopolies, it is always optimal to subsidize exports when entry is endogenous, under both quantity and price competition. With homogenous goods the optimal export subsidy is a fraction of the price, where is the elasticity of demand (the exact opposite of the optimal export tax in the neoclassical trade theory). Analogously, I show the general optimality of R&D subsidies and of competitive devaluations to promote exports in foreign markets where entry is endogenous.