Dr. Heiner Mikosch - Seminar Presentation

Date and Time: June 10th, 2019, 3:00 pm - 5:00pm

Room: A 101 in the Economics Building (Museum)

Abstract

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.