Establishing a model of a monopolistically competitive industry in which risk-averse Cournot firms act under demand uncertainty and in which the output of individual firms and the number of firms in the industry are both endogenously determined by free entry and exit, this paper attempts to investigate the effects of demand uncertainty on the market equilibrium of a monopolistically competitive industry. It is assumed, for calculus simplification, that the firms are identical in the sense that they have the same monopolistic power and the same production technology. The paper presents some interesting and useful comparative statics results which are contrary to those proposed in the existing papers.
|ジャーナル||Journal of Economics Zeitschrift für Nationalökonomie|
|出版ステータス||Published - 1991 2|
ASJC Scopus subject areas
- Economics and Econometrics
- Business, Management and Accounting(all)