Sunk costs, accommodation, and the welfare effects of entry

Article Abstract:

The standard Cournot model was employed to study how sunk costs change the social welfare effects of the entry of companies into a particular industry. Results showed that the scope of parameter values over which an entry can negatively affect social welfare decreases monotonically in the fraction of the cost that are sunk. Moreover, the existence of even a small percentage of sunk costs usually counters the negative effect of entry on social welfare.

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Sequential entry with brand loyalty caused by consumer learning-by-using

Article Abstract:

Astudy was conducted to analyze the benefits of first companies in markets with sequential entry and new products. The study assumes that companies vary with respect to marketing strategy for new products. First firms which anticipate the entry of rival companies set low prices to develop and strengthen consumer preference for their product. Results show that brand loyalty eliminates restrictions to market entry.

Analysis, Brand choice, Learning models (Stochastic processes), Stochastic models

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Quality leadership when regulatory standards are forthcoming

Article Abstract:

Results from an applied business model showing most self regulated businesses exceeding current standards lead to public confidence in the business, in turn leading the government to impose weaker regulation.

United States, Public Administration, Government, Management, Laws, regulations and rules, Industry regulations, Government regulation of business, Trade regulation

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