Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265969 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 9934
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would accommodate all firms. Also, the possibility of survival increases if the local firms could differentiate their product more and then we drift towards the conventional result.
Subjects: 
product differentiation
free entry
Cournot
output
market size
technology
FDI
JEL: 
L13
D40
F10
Document Type: 
Working Paper
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