Cost‐Reducing Investment, Competition, and Industry Dynamics
证明，在无不确定性且企业事前相同的竞争性行业中，沿着社会最优的动态均衡路径，仍可能出现企业淘汰和异质性，早期企业亏损而后期盈利，且初始期后无新进入。
We demonstrate the possibility of shake‐out of firms and emergence of interfirm heterogeneity along the (socially optimal) dynamic equilibrium path of a competitive industry with free entry and exit, even when there is no uncertainty and all firms are ex ante identical with perfect foresight. Atomistic firms with upward‐sloping marginal cost curves undertake investment in firm‐specific cost reduction. They earn negative net profits in early periods, compensated later by strictly positive net profits; no entry occurs after the initial time period. Some firms may exit before others even while other firms earn positive net profits.