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- W1996653685 abstract "Typically, models that study the role of sunk costs suppose that incumbent firms face entry by a single firm each period. In this paper, the set of equilibrium market structures that result when all firms are free to enter or exit and set prices each period are characterized. The effect of sunk costs on the market structure is examined and it is shown that sunk costs can take on various forms, each having a different effect on the set of equilibrium market structures. Costs that are sunk due to the existence of product- specific capital do not in general deter entry. Rather, entry deterrence is a necessary outcome only when costs are sunk due to the time it would take to leave the market." @default.
- W1996653685 created "2016-06-24" @default.
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- W1996653685 date "1987-02-01" @default.
- W1996653685 modified "2023-09-24" @default.
- W1996653685 title "Entry, Sunk Costs, and Market Structure" @default.
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- W1996653685 doi "https://doi.org/10.2307/135236" @default.
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