Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159422
Authors: 
Bacchiega, Emanuele
Garella, Paolo G.
Year of Publication: 
2007
Series/Report no.: 
Quaderni - Working Paper DSE 581
Abstract: 
We study reactions to entry in a Cournot model, contrasting the case where firms are endowed with unchangeable technologies against that where technologies are flexible. By the latter we mean that firms can change the installed production technique at zero cost (fully flexible technologies). We show that when firms are technologically flexible, entry can increase equilibrium prices. The analysis is cast in a short- run time horizon to simplify exposition, but its predictive power may better relate to the long run.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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