Social desirability of entry in a bilateral oligopoly—The implications of (non) sunk costs
(2022)
Journal Article
Mukherjee, A., & Zeng, C. (2022). Social desirability of entry in a bilateral oligopoly—The implications of (non) sunk costs. Mathematical Social Sciences, 118, 12-19. https://doi.org/10.1016/j.mathsocsci.2022.05.002
We show the implications of sunk investments for social efficiency of downstream-entry in a bilateral oligopoly. The possibility of socially excessive entry increases as the percentage of non-sunk investments increases. If there are no sunk investmen... Read More about Social desirability of entry in a bilateral oligopoly—The implications of (non) sunk costs.