Very Simple Markov-Perfect Industry Dynamics: Theory
构建了一个简单的寡头市场企业进入、竞争与退出模型，假设企业在决策时预期收益相同，证明了存在唯一对称马尔可夫完美均衡，并给出了快速收敛的计算算法。
This paper develops a simple model of firm entry, competition, and exit in oligopolistic markets. It features toughness of competition, sunk entry costs, and market‐level demand and cost shocks, but assumes that firms' expected payoffs are identical when entry and survival decisions are made. We prove that this model has an essentially unique symmetric Markov‐perfect equilibrium, and we provide an algorithm for its computation. Because this algorithm only requires finding the fixed points of a finite sequence of contraction mappings, it is guaranteed to converge quickly.