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- W2000689397 abstract "This paper presents a model of output decisions by competitive firms which have incomplete information about costs. Unlike other work on this topic, our model incorporates the possibility of exit from the market after a firm has observed its unit cost. At the equilibrium expected aggregate output and the likelihood of exit depend upon the opportunity cost of staying in the market, the number of informed firms, and the intensity of competition. Uninformed firms may be better off than informed firms if exit is feasible. As a result, even if all firms face the same cost of acquiring information, informed firms may coexist with uninformed firms." @default.
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- W2000689397 date "1988-01-01" @default.
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- W2000689397 title "Exit with incomplete information about cost" @default.
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- W2000689397 doi "https://doi.org/10.1016/0167-6245(88)90004-2" @default.
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