Price and Entry Regulations with large Fixed Costs
研究高固定成本行业中企业数量对社会最优资源配置的影响，建立了固定企业数量下的纯利润与增加或减少企业数量可取性之间的关系，并讨论了第一最优和受非负利润约束的第二最优情况，为价格和准入管制提供理论依据。
Consider an industry with many potential firms, each firm characterized by a cost structure with large fixed costs. In determining the socially optimal resource allocation, the number of firms is a crucial variable. In this paper a relationship is established between pure profits with a fixed number of firms and the desirability of increasing or diminishing the number of firms in the industry. Both first-best and nonnegative profit-constrained, second-best cases are considered. The results are related to price and entry regulation in such an industry.