Entry and empirical demand and supply analysis for competitive industries (Q1069417)

Since many theoretical and empirical models of competitive industries do not take appropriate account of entry, several deterministic demand, supply and entry (DSE) models are formulated and analyzed. The supply equation in these models is derived assuming profit maximization, identical production functions and competitive conditions for producers. Models are solved to yield equilibrium price, output, and number of producers and properties of solutions are analyzed. Annual data for the Canadian household furniture industry are employed to investigate and estimate various forms of supply and entry equations.