Driffill, John; Raybaudi, Marzia; Sola, Martin - In: Studies in Nonlinear Dynamics & Econometrics 7 (2007) 1, pp. 1131-1131
We study how entry and exit decisions of a monopolist are affected by business cycle conditions. We model the business cycle as a two-state Markov process, and assume that the demand curve faced by the monopolist evolves differently in the two states of the economy. We explore conditions under...
