Social Efficiency of Entry in an Open Economy

Autor: Han, Tien-Der, Haque, M. Emranul, Mukherjee, Arijit
Rok vydání: 2021
Předmět:
Zdroj: Han, T-D, Haque, M E & Mukherjee, A 2022, ' Social Efficiency of Entry in an Open Economy ', B.E. Journal of Economic Analysis and Policy, vol. 22, no. 1, pp. 203-219 . https://doi.org/10.1515/bejeap-2020-0097
ISSN: 1935-1682
DOI: 10.1515/bejeap-2020-0097
Popis: We show that cost asymmetry between the domestic and foreign firms is not necessary for the occurrence of insufficient entry in the domestic country. This result provides a rationale for pro-competitive domestic policies even in the absence of cost asymmetries among the domestic and foreign firms. However, if significant demand comes from foreign countries, and the market structures are determined endogenously in the domestic and foreign countries, domestic-entry in an open economy might not be insufficient, implying that foreign competition might not reduce the importance of anti-competitive domestic policies.
Databáze: OpenAIRE