Extending Milgrom and Roberts (1982), we analyze an infinite horizon entry model where an incumbent may use its current price to signal its strength, in order to deter entry. In contrast with conventional limit pricing, we show the entry of weaker firms. We also provide necessary and sufficient...

A dynamic economy with markets of equities and bonds is considered. The rational expectations equilibrium is defined in an asset pricing model and a condition under which the Modigliani-Miller theorem holds is shown. In an aggregate model the existence of a rational expectations equilibrium is...

This study reconsiders the interest rate rule for the Russian monetary policy, of which no evidence was found in earlier studies. This study successfully estimates an interest rate rule. In order to obtain this result, we follow Surico (2007).s nonlinear approach. The main contributions of this...

The lack of complete information of the government has been considered as a barrier to the optimal regulation, as it is well-known in price regulations literature. However, it is not true for the entry regulation: This paper shows that the performance of the entry regulation under incomplete...

Equilibrium properties of Cournot and Stackelberg duopoly are compared with respect to outputs, profits, and welfare, the results of which depend on some conditions expressed in terms of the elasticities of the cost and demand functions. In particular, the case where the condition owing to...

Using census-type data of Hungarian firms, we test major hypotheses of spatial economic theories focusing on the impact of industrial and market concentrations on regional economic growth. Our empirical evidence confirms that both industrial and market concentrations have a significant positive...

As a case study of metaeconomic analysis we discuss Marx.s economic thinking on .metamorphosis.. Our aim is to extend the coverage of the concept beyond the ordinary sphere of economic analysis. For that purpose, the formal structure of metamorphosis is represented by the algebraic structures of...