haku: @indexterm SUNK COSTS / yhteensä: 19
viite: 11 / 19
| Tekijä: | Lambson, V. |
| Otsikko: | Sunk costs, entry, and the timing of cost-reducing investment |
| Lehti: | International Journal of Industrial Organization
2000 : OCT, VOL. 18:7, p. 1067-1084 |
| Asiasana: | SUNK COSTS INVESTMENT MODELS |
| Kieli: | eng |
| Tiivistelmä: | The traditional IO literature asserts that firms with monopoly power produce less efficiently than competitive firms and that they often reduce costs only after entry delivers a "wake-up call". A model with sunk costs and uncertainty can explain this phenomenon. If becoming more efficient entails sunk costs, incumbents have an incentive to wait until a competitor's efficiency is revealed by actual entry before deciding whether to make the investment. |
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