Browsing by Author "Fujita, Yasunori"

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    Value of Waiting and Excess Entry Theorem
    (Scientific Research, 2016-04) Fujita, Yasunori
    By reformulating the Cournot model by making use of the optimal stopping theory, we reconsider the excess entry theorem for a stochastic market. It is revealed that: 1) free entry in a stochastic oligopolistic market is socially excessive, owing not only to the presence of scale economies but also to the value of waiting; 2) welfare maximizing number of the entrants is larger if the market is more uncertain.