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Saturday, April 18, 2020 | History

8 edition of Sunk costs and market structure found in the catalog.

Sunk costs and market structure

price competition, advertising, and the evolution of concentration

by Sutton, John

  • 25 Want to read
  • 0 Currently reading

Published by MIT Press in Cambridge, Mass .
Written in English

    Subjects:
  • Industrial organization (Economic theory),
  • Game theory,
  • Advertising -- Costs -- Mathematical models,
  • Sunk costs -- Mathematical models

  • Edition Notes

    Includes bibliographical references (p. [533]-554) and index.

    StatementJohn Sutton.
    Classifications
    LC ClassificationsHD2326 .S88 1991
    The Physical Object
    Pagination577 p. :
    Number of Pages577
    ID Numbers
    Open LibraryOL1864771M
    ISBN 100262193051
    LC Control Number90022722

    Abstract: Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature recently and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S. Bain and his successors. Because many Cited by: The term ‘market structure’ relates to the number and size distribution of firms in a market. Markets dominated by a few large firms are said to be ‘concentrated’. This article offers a brief review of the modern literature that sets out to explain differences in concentration levels across different industries.


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Sunk costs and market structure by Sutton, John Download PDF EPUB FB2

Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S.

Bain and his successors. The new theoretical literature has engendered Cited by: Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S.

Bain and his successors. The new theoretical literature has engendered pessimism in. Sunk Costs and Market Structure book. Read reviews from world’s largest community for readers.

Sunk Costs and Market Structure bridges the gap between th /5. "An excellent piece of empirical work by a leader in industrial organization.

Econometric tests and industry studies are carefully guided by sound theory. A must reading for students in the field." -- Jean Tirole, MIT "Sunk Costs and Market Structure" bridges the gap between the new generation of game-theoretic models, which have dominated the industrial organization literature over the past.

Advertising, product development, and revenue data for the online book market reveal that consumers respond to Sunk costs and market structure book and website spending rather than low prices.

As the market size expanded, during –, these endogenous sunk costs Cited by: -- Jean Tirole, MIT "Sunk Costs and Market Structure" bridges the gap between the new generation of game-theoretic models, which have dominated the industrial organization literature over the past ten years, and the traditional empirical agenda of the subject, as embodied in the structure-conduct-performance paradigm developed by Joe S.

Bain. PRICING, SUNK COSTS, AND MARKET STRUCTURE ONLINE: EVIDENCE FROM BOOK RETAILING SIMON LATCOVICH HOWARD SMITH Balliol College, Oxford While online consumers are less concerned than traditional consumers about firm location, they may be more concerned about unobservable quality and, to signal this, online retailers rely more on advertising.

Find helpful customer reviews and review ratings for Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration at Read honest and unbiased product reviews from our users/5.

Download Citation | Pricing, Sunk Costs, and Market Structure Online: Evidence from Book Retailing | We examine whether the spread of an exporting strategy can be characterized as a diffusion.

Traditionally, the most important features of market structure are: The number of firms (including the scale and extent of foreign competition); The market share of the largest firms (measured by the concentration ratio – see below); The nature of costs (including the potential for firms to exploit economies of scale and also the presence of sunk costs which affects market contestability in.

John Sutton has opened a direct attack in the main positive economics issues in Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concen-tration ().

The book's title and subtitle announce two of its three bold themes. First. Dynamics of Market Structure Dynamic Games Learning by Doing and Network Effects Shakeouts Turbulence 5 Caveats and Controversies Endogenous Sunk Costs: A Caveat Can ‘Increasing Returns’ explain Concentration.

Fixed versus Sunk Costs 6 Unanswered Questions and Current Research. Sutton, J. Sunk Costs and Market Structure. The MIT Press, Cambridge, Massachusetts, ISBN Varian, Hal R. Intermediate Microeconomics: A Modern Approach.

Fifth Ed. New York, ISBN   Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S.

Bain and his successors/5(7). Buy Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration (The MIT Press) 1st MIT Press Pbk. Ed by Sutton, John (ISBN: ) from Amazon's Book Store.

Everyday low prices and free delivery on eligible orders.5/5(1). D.) difference in book and market value time-value of money The accelerated write-off of capital costs in MACRS depreciation provides a taxable expense that reduces taxes at a. Pricing, Sunk Costs, and Market Structure Online: Evidence from Article in Oxford Review of Economic Policy 17(2) February with 17 Reads How we measure 'reads'.

new theory of endogenous sunk costs, which builds on and extends existing theory, appears to provide the explanation. In his book Sunk Costs and Market Structure (Sutton ; see also Shaked & Sutton ; Sutton ; Shaked & Sutton ) Sutton has made a persuasive case,File Size: KB. Sunk costs and market structure: price competition, advertising, and the evolution of concentration.

Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over price competition, advertising, and the evolution of concentration\/span.

Sunk Cost: A sunk cost is a cost that has already been incurred and thus cannot be recovered. A sunk cost differs from future costs that a business may face, such as. Technology And Market Structure book. Read reviews from world’s largest community for readers.

Traditionally, the field of industrial organization has re /5(4). Get this from a library. Sunk costs and market structure: price competition, advertising, and the evolution of concentration.

[John Sutton]. This book follows Sutton's Sunk Costs and Market Structure, published by MIT Press in Hardcover Out of Print ISBN: pp. | 6 in x 9 in illus. October Sunk costs are also known as irrelevant costs. Answer and Explanation: The correct answer to this question is d) net book value of equipment that has no market value.

net operating cash flow generated by the project, less any sunk costs and erosion costs. sum of the incremental operating cash flow and aftertax salvage value of the project.

net income generated by the project, plus the annual depreciation expense. The item Sunk costs and market structure: price competition, advertising, and the evolution of concentration, John Sutton represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in Brigham Young University.

Corrections. All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:vyipSee general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title. Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S.

Bain and his new theoretical literature has engendere. Costs are considered sunk even if an item is never completely used. Suppose a company, SMR Producers, purchases a machine for $5, with an. Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration The MIT Press: : Sutton, John: Libros en idiomas extranjeros5/5(1).

Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature recently and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S.

Bain and his successors. Because many results turn out to depend on detailed features of the market. Competition in quality with escalating levels of endogenous sunk costs may produce levels of concentration even higher than expected in their absence.

We show that consumers may very well benefit from such expenditures despite the effects on concentration and likely attenuation of Author: George S. Ford, Michael Stern. Fixed and Variable Sunk Cost.

Companies can further classify sunk cost into a variable and fixed cost. For instance, if a company spends around $5 million for installing a new machine, it would be a one-time cost that is unrecoverable, and thus, is sunk cost. Regular payments made for the maintenance of the machinery is the ‘fixed’ part.

The result is that the considerations motivating the cross-section tradition and those motivating the growth-of-firms tradition both drop out within a single game-theoretic book follows Sutton's Sunk Costs and Market Structure, published by MIT Press in S.

Latcovitch, H.W. SmithPricing, sunk costs and market structure online: evidence from book retailing Oxford Review of Economic Policy, 17 (), pp. Google ScholarAuthor: Didier Laussel, Rim Lahmandi-Ayed. We describe the industrial market structure of CPG categories.

The analysis uses a unique database spanning 31 consumer package goods (CPG) categories, 39 months, and the 50 largest US metropolitan markets. We organize our description of market structure around the notion that firms can improve brand perceptions through advertising investments, as in Sutton’s endogenous sunk cost Cited by: 7.

Firms can switch avoidable costs in a market, using local or international providers of inputs required to create final product. Sunk costs are an example of unavoidable costs, where it does not depend on production but there are necessary to start production by firm.

() Sunk Costs and Market Structure. The MIT Press, Cambridge. Sunk cost. A sunk cost is a cost that you incurred in the past (i.e. ‘a cost that is sunk into it’) and which cannot be recovered.

Because we cannot recover such costs, they should not be taken into consideration when making (rational) decisions. In such cases, only future costs should matter. An example of. Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration: ISBN () Hardcover, The MIT Press, Technology and Market Structure: Theory and History.

Sunk Cost Definition. A sunk cost is the money that has already been spent and cannot be retrieved. Traditional microeconomics theory proposes the sunk cost should not influence an investment decision as it is already gone, and the cost will remain the same irrespective of the outcome of the decision.

Pricing, Sunk Costs, and Market Structure Online: Evidence from Book Retailing Oxford Review of Economic Policy, Vol. 17, Issue 2, pp.Posted: 29 Feb UNSPECIFIED () SUNK COSTS AND MARKET-STRUCTURE - PRICE-COMPETITION, ADVERTISING, AND THE EVOLUTION OF CONCENTRATION - SUTTON,J. MANCHESTER SCHOOL OF ECONOMIC AND SOCIAL STUDIES, 60 (3).

pp. ISSN Research output not available from this repository, contact author. Request Changes to record.Fixed costs develop as a problem for the entrepreneurial project of a hit-and-run approach only if they cannot be liquidated, that is when they become sunk costs; costs that cannot be easily recovered (see for example Kessides, ).

This is the example of a barrier to entry: a potential competitor might decide not to enter the market because.