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Sunk Costs, Depreciation, and Industry Dynamics

Gschwandtner, Adelina, Lambson, Val E (2012) Sunk Costs, Depreciation, and Industry Dynamics. Review of Economics and Statistics, 94 (4). pp. 1059-1065. ISSN 1530-9142. (doi:10.1162/REST_a_00236) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1162/REST_a_00236

Abstract

Two of the most robust results from dynamic competitive models of industrial organization suggest that higher-sunk-cost industries should exhibit higher intertemporal variability in the market value of their firms and lower intertemporal variability in the size of their industries. These predictions have done well empirically. This paper argues on theoretical and empirical grounds that depreciation generates countervailing effects.

Item Type: Article
DOI/Identification number: 10.1162/REST_a_00236
Additional information: number of additional authors: 1;
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Stewart Brownrigg
Date Deposited: 07 Mar 2014 00:05 UTC
Last Modified: 01 Feb 2020 04:05 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/40541 (The current URI for this page, for reference purposes)
Gschwandtner, Adelina: https://orcid.org/0000-0002-6952-1782
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