haku: @author Cooper, R. / yhteensä: 94
viite: 48 / 94
| Tekijä: | Charttrjee, S. Cooper, R. Ravikumar, B. |
| Otsikko: | Strategic complementarity in business formation: aggregate fluctuations and sunspot equilibria |
| Lehti: | Review of Economic Studies
1993 : OCT, VOL. 60(4):205, p. 795-811 |
| Asiasana: | COMPANY FORMATION STRATEGY MODELS |
| Kieli: | eng |
| Tiivistelmä: | The possibility of sunspot equilibria and endogenous cycles are explored in a two-sector overlapping-generations model with entry. It is shown that if prospective entrants act oligopolistically as producers but competitively as consumers then a strategic complementarity between the entry decisions of agents across sectors and across time may arise. If the complementarity is sufficiently strong, economy will have multiple, Pareto-ranked steady states. Stationary sunspot equilibria can then be constructed as a randomization between allocations in the neighbourhood of the multiple steady states providing a source of aggregate fluctuations. |
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