This paper reconsiders the well-known comparison of equilibrium entry levels into a Cournot industry under free entry, second best (control of entry but not production) and first best (control of entry and production). Allowing for the possibility of limited increasing returns to scale in...

A preference is invariant with respect to a set of transformations if the ranking of acts is unaffected by reshuffling the states under these transformations. For example, transformations may correspond to the set of finite permutations, or the shift in a dynamic choice model. Our main result is...