The Effects of Market Structure on Industry Growth: Rivalrous Non-excludable Capital

Reference : The Effects of Market Structure on Industry Growth: Rivalrous Non-excludable Capital


	Document type :	Reports : External report
	Discipline(s) :	Business & economic sciences : Microeconomics
	To cite this reference:	http://hdl.handle.net/10993/12205

Title :	The Effects of Market Structure on Industry Growth: Rivalrous Non-excludable Capital
Language :	English
Author, co-author :	Koulovatianos, Christos [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
	Mirman, Leonard J. [> >]
Publication date :	2005
Publisher :	University of Vienna, Department of Economics
Report number :	0501
Abstract :	[en] We analyze imperfect competition in dynamic environments where firms use rivalrous but nonexcludable industry-specific capital that is provided exogenously. Capital depreciation depends on utilization, so firms influence the evolution of the capital equipment through more or less intensive supply in the final-goods market. Strategic incentives stem from, (i) a dynamic externality, arising due to the non-excludability of the capital stock, leading firms to compete for its use (rivalry), and, (ii) a market externality, leading to the classic Cournot-type supply competition. Comparing alternative market structures, we isolate the effect of these externalities on strategies and industry growth.
Permalink :	http://hdl.handle.net/10993/12205
Other URL :	http://ideas.repec.org/p/vie/viennp/0501.html
Commentary :	Vienna Economics Papers

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