We turn the zero-profit condition that is typically used to determine the number of firms into a game of entry/exit. We assume that identical firms compete in Cournot fashion, and when market conditions change, the equilibrium number of firms is determined in an entry/exit game. Focusing on...

We turn the zero-profit condition that is typically used to determine the number of firms into a game of entry/exit. We assume that identical firms compete in Cournot fashion, and when market conditions change, the equilibrium number of firms is determined in an entry/exit game. Focusing on...