Monopolistic Competition andEntrepreneurial RiskRTaking

This paper investigates the effects of monopolistic competition onentrepreneurial riskRtaking in a general equilibrium model. In thiscontext, occupational choice of risk averse agents is biased towardsfirm ownership. In this case, the inefficiencies due to the presence ofnondiversifiable risk are partly compensated by inefficiencies arisingfrom imperfect competition.[...]

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Year of publication:	2004-10-01
Authors:	Clemens, Christiane
Institutions:	Universität <Hannover> / Wirtschaftswissenschaftliche Fakultät
Subject:	Wettbewerb \| market microstructure \| Unsicherheit \| Berufswahl \| Monopol

Table of Contents
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1 Introduction
2 The Model and Individual Optimization
3 Market Equilibrium
4 Comparative Statics: Population Share of Firms
5 Comparative Statics: Risk and Efficiency
6 Comparative Statics: Competition and Efficiency
7 Conclusion
References

Persistent link: https://www.econbiz.de/10005867628