Date and Time: June 10th, 2019, 3:00 pm - 5:00pm
Room: A 101 in the Economics Building (Museum)
Consumer often stockpile for future consumption. In this paper, we connect consumer stockpiling and market entry by introducing consumer stockpiling behaviour into a dynamic circumstance of n-firm oligopoly with differentiated products. First, we show that for any ﬁnite number of ﬁrms and positive transaction costs, any symmetric equilibrium involves a positive level of consumer stockpiling. Second, by introducing free entry, we show that the excess entry theorem continues to hold despite the extra inter-temporal eﬀects on consumer stockpiling. Our result extends to the case of new consumers in the future market, and the case where ﬁrm to incur an inventory cost.
About the speaker
Leonard F.S. Wang is Professor at the Wenlen School of Business at Zhongnan University of Economics and Law. He has published more than 40 papers in international peer-reviewed journals among them the Journal of Environmental Economics and Management, Journal of Development Economics, Journal of Economic Dynamics and Control, and International Review of Economics and Finance.