Free Entry and Welfare with Different Firms
Keywords: 
Materias Investigacion::Economía y Empresa
Free entry
Social welfare
Oligopoly
Issue Date: 
2012
Citation: 
Galera, F. (Francisco); Rodríguez-Tejedo, I. (Isabel); Molero, J.C. (Juan Carlos). "Free Entry and Welfare with Different Firms". En . , 2012,
Abstract
It has been proved that in an homogeneous product industry, price over marginal costs, business stealing, set up costs and free entry imply excess entry from the welfare point of view. The proof assumes identical firms. We show by example that with non-identical firms, those conditions are compatible with insufficient entry. Besides, we provide a criterium to evaluate excess entry in industries with non-identical firms and externalities.

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