Investment in Competitive Equilibrium: The Optimality of Myopic Behavior

S-Tier
Journal: Quarterly Journal of Economics
Year: 1993
Volume: 108
Issue: 4
Pages: 1105-1133

Authors (1)

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

There is an extensive literature on the optimal irreversible investment strategy of a solitary firm facing an exogenous price process. This paper shows that the investment strategies that this literature derives may be optimal in competitive equilibrium even though the price process is now endogenous. This provides a simple means for computing equilibrium investment strategies.

Technical Details

RePEc Handle
repec:oup:qjecon:v:108:y:1993:i:4:p:1105-1133.
Journal Field
General
Author Count
1
Added to Database
2026-01-25