On the Effects of Entry under Flexible Production Techniques: An Example of Quasi-Anticompetitiveness

Bacchiega, Emanuele ; Garella, Paolo G. (2007) On the Effects of Entry under Flexible Production Techniques: An Example of Quasi-Anticompetitiveness. Bologna: Dipartimento di Scienze economiche DSE, p. 8. DOI 10.6092/unibo/amsacta/4703. In: Quaderni - Working Paper DSE (581). ISSN 2282-6483.
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Abstract

We study reactions to entry in a Cournot model, contrasting the case where firms are endowed with unchangeable technologies against that where technologies are flexible. By the latter we mean that firms can change the installed production technique at zero cost (fully flexible technologies). We show that when firms are technologically flexible, entry can increase equilibrium prices. The analysis is cast in a short- run time horizon to simplify exposition, but its predictive power may better relate to the long run.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Bacchiega, Emanuele
Garella, Paolo G.
Keywords
Entry, Technological Flexibility, Oligopoly Theory.
Subjects
ISSN
2282-6483
DOI
Deposit date
26 Feb 2016 12:37
Last modified
26 Feb 2016 12:37
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