Sunk Costs and Market Structure


Book Description

Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S. Bain and his successors.







The Oxford Handbook of Creative Industries


Book Description

The Oxford Handbook of Creative Industries is a reference work, bringing together many of the world's leading scholars in the application of creativity in economics, business and management, law, policy studies, organization studies, and psychology. Creative industries research has become a regular theme in academic journals and conferences across these subjects and is also an important agenda for governments throughout the world, while business people from established companies and entrepreneurs revaluate and innovate their models in creative industries. The Handbook is organized into four parts: Following the editors' introduction, Part One on Creativity includes individual creativity and how this scales up to teams, social networks, cities, and labour markets. Part Two addresses Generating and Appropriating Value from Creativity, as achieved by agents and organizations, such as entrepreneurs, stars and markets for symbolic goods, and considers how performance is measured in the creative industries. Part Three covers the mechanics of Managing and Organizing Creative Industries, with chapters on the role of brokerage and mediation in creative industry networks, disintermediation and glocalisation due to digital technology, the management of project-based organzations in creative industries, organizing events in creative fields, project ecologies, Global Production Networks, genres and classification and sunk costs and dynamics of creative industries. Part Four on Creative Industries, Culture and the Economy offers chapters on cultural change and entrepreneurship, on development, on copyright, economic spillovers and government policy. This authoritative collection is the most comprehensive source of the state of knowledge in the increasingly important field of creative industries research. Covering emerging economies and new technologies, it will be of interest to scholars and students of the arts, business, innovation, and policy.




Economic Foundations of Strategy


Book Description

The theoretical foundations of management strategy are identified and outlined in this text. Five theories are considered in the light of questions about how organisations operate efficiently, cost minimization, wealth creation, individual self-interest, and continued growth.




Applied Industrial Economics


Book Description

This reader provides a unique mix of American and European contributions to the study of particular markets, often combined with a critical evaluation of antitrust regulations, decisions or judgments. Part I explains market structure as a function of sunk costs and market size. Part II illustrates the central role of pricing schemes (including parallel pricing, delivered pricing and competition clauses) in sustaining equilibrium outcomes in oligopolistic markets. Parts III and IV give a game-theoretic foundation to competition policy and merger control. Louis Phlips offers a comprehensive introduction to the text in which he very carefully explains the reasoning behind his choice of papers, and provides a superb synthesis of the material. Particular highlights include the discussion and evaluation of antitrust regulations, which involve a systematic comparative analysis of European and American regulations, decisions and judgments in this area.




Principles of Macroeconomics for AP® Courses 2e


Book Description

Principles of Macroeconomics for AP® Courses 2e covers the scope and sequence requirements for an Advanced Placement® macroeconomics course and is listed on the College Board's AP® example textbook list. The second edition includes many current examples and recent data from FRED (Federal Reserve Economic Data), which are presented in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition was developed with significant feedback from current users. In nearly all chapters, it follows the same basic structure of the first edition. General descriptions of the edits are provided in the preface, and a chapter-by-chapter transition guide is available for instructors.




The Tyranny of the Market


Book Description

Economists have long counseled reliance on markets rather than on government to decide a wide range of questions, in part because allocation through voting can give rise to a "tyranny of the majority." Markets, by contrast, are believed to make products available to suit any individual, regardless of what others want. But the argument is not generally correct. In markets, you can't always get what you want. This book explores why this is so and its consequences for consumers with atypical preferences.




Handbook of Industrial Organization


Book Description

Handbook of Industrial Organization Volume 4 highlights new advances in the field, with this new volume presenting interesting chapters. Each chapter is written by an international board of authors. Part of the renowned Handbooks in Economics series Chapters are contributed by some of the leading experts in their fields A source, reference and teaching supplement for industrial organizations or industrial economists




An Empirical Model of Sunk Costs and the Decision to Export


Book Description

March 1995 Exports respond unpredictably to a change in real exchange rates, suggests evidence from the 1980s. Recent theoretical work explains this as a consequence of the sunk costs associated with breaking into foreign markets. Sunk costs include the cost of packaging, upgrading product quality, establishing marketing channels, and accumulating information on demand sources. The authors use micro panel data to estimate a dynamic discrete-choice model of participation in export markets, a model derived from the Krugman-Baldwin sunk-cost hysteresis framework. Applying the model to data on manufacturing plants in Colombia (1981-89), they test for the presence of sunk entry costs and quantify the importance of those costs in explaining export patterns. The econometric results reject the hypothesis that sunk costs are zero. The results, which control for both observed and unobserved sources of plant heterogeneity, indicate that prior export market experience has a substantial effect on the probability of exporting, but its effect depreciates fairly quickly. The reentry costs of plants that have been out of the export market for a year are substantially lower than the costs of a first-time exporter. After a year out of the export market, however, the reentry costs are not significantly different from the entry costs. Plant characteristics are also associated with export behavior: large old plants owned by corporations are more likely to export than other plants. Variations in plant-level cost and demand conditions have much less effect on the profitability of exporting than variations in macroeconomic conditions and sunk costs do. It appears especially difficult to break into foreign markets during periods of world recession.




Handbook of Production Economics


Book Description

This three-volume handbook includes state-of-the-art surveys in different areas of neoclassical production economics. Volumes 1 and 2 cover theoretical and methodological issues only. Volume 3 includes surveys of empirical applications in different areas like manufacturing, agriculture, banking, energy and environment, and so forth.