Investment dynamics in markets with endogenous demand
研究了因学习、网络或时尚导致需求随历史销售增长的市场中，企业进入的动态过程，发现竞争扩张路径与垄断最优路径在投资水平和时间模式上存在差异，且存在路径依赖。
I examine entry into markets where demand is an increasing function of past sales because of learning, networks, or fashion. Demand is initially unknown (with firms learning in Bayesian fashion) and grows endogenously over time. The competitive expansion path and the efficient/monopoly solution differ not only with respect to levels (the market’s investment is too low), but also time patterns : externalities contribute to S‐shaped diffusion. There is also path‐dependence: small initial differences may determine whether the market will grow or not open. Policy arguments for subsidizing entry into new markets, especially in infant export industries, are examined.