The DOI matches its Crossref record.
Free Entry and Social Inefficiency
Abstract
Previous articles have noted the possibility of socially inefficient levels of entry in markets in which firms must incur fixed set-up costs upon entry. This article identifies the fundamental and intuitive forces that lie behind these entry biases. If an entrant causes incumbent firms to reduce output, entry is more desirable to the entrant than it is to society. There is therefore a tendency toward excessive entry in homogeneous product markets. The roles of product diversity and the integer constraint on the number of firms are also examined.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cited by
Do increasing markups matter? Lessons from empirical industrial organization
Berry, S., Gaynor, M., & Morton, F. S. (2019) · Journal of Economic Perspectives · doi:10.1257/jep.33.3.44 · Cited by 235
Competition and relational contracts in the rwanda coffee chain
Macchiavello, R., & Morjaria, A. (2021) · The Quarterly Journal of Economics · doi:10.1093/qje/qjaa048 · Cited by 124
Race to the Bottom: Competition and Quality in Science
Hill, R., & Stein, C. (2025) · The Quarterly Journal of Economics · doi:10.1093/qje/qjaf010 · Cited by 40
Generative AI in Equilibrium: Evidence from a Creative Goods Marketplace
Goldberg, S., & Lam, H. T. (2025) · doi:10.2139/ssrn.5152649 · Cited by 2
Metadata
- Authors
- Mankiw, N. G., & Whinston, M. D.
- Venue
- The RAND Journal of Economics
- Publisher
- Wiley
- Published
- 1986
- Volume
- 17
- Issue
- 1
- Pages
- 48
- ISSN
- 0741-6261 (ISSN-L)
- OpenAlex
- W1974876572
- Cited by
- 1,233
- References
- 0
- FWCI
- 28.77
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
