We develop a dynamic general equilibrium model of capital accumulation where credit is intermediated by banks operating in a Cournot oligopoly. The number of banks affects capital accumulation through two channels. First, it affects the quantity of credit available to entrepreneurs. Second, it...

The total number of firms, out of which around at least 95 to 99 per cent (or even more) are SMEs approximates the degree of competition that exists in each country and within each sector of a national economy. A historical examination of the American and Japanese firm evolutions, which shows a...

This paper considers an incumbent firm that is faced with a potential entrant in a vertically differentiated market. It demonstrates than an incumbent firm cannot prevent entry through product proliferation because of a commitment problem.