IDEAS home Printed from https://ideas.repec.org/a/ris/actuec/v78y2002i3p411-419.html
   My bibliography  Save this article

Quelques réflexions autour du paradoxe de l’irrécouvrabilité

Author

Listed:
  • Antomarchi, Philippe

    (Centre d’Économie et de Finances Internationales)

Abstract

The notion of sunkness is very important in industrial organization when taking into consideration the problem of market entry barriers in general, since the level of sunk costs determines in two ways the behaviour of the firms who are already established as well as those who are possible potential entrants; firstly, by giving rise to the risk of losses closely linked to any decision to enter, and/or secondly, by influencing the incentives of incumbents to do battle with each other. The aim of this short paper is first of all to discuss these different aspects and their implications, and then to highlight a certain “paradox”, which comes as the consequence of considering both in parallel and simultaneously this double mechanism of sunkness. La notion d’irrécouvrabilité est très importante en économie industrielle lorsque l’on s’intéresse au problème des barrières à l’entrée en général, puisque la hauteur des coûts irrécupérables conditionne les comportements des firmes installées et postulantes de deux manières : en engendrant un risque de perte liée à une décision d’entrée et/ou en influençant les incitations des firmes installées à se battre. L’objectif de cette courte note est d’abord de discuter sur ces différents aspects et leurs implications, pour ensuite mettre en lumière un « paradoxe » conséquent à la mise en parallèle et à la simultanéité de ce double mécanisme de l’irrécouvrabilité.

Suggested Citation

  • Antomarchi, Philippe, 2002. "Quelques réflexions autour du paradoxe de l’irrécouvrabilité," L'Actualité Economique, Société Canadienne de Science Economique, vol. 78(3), pages 411-419, Septembre.
  • Handle: RePEc:ris:actuec:v:78:y:2002:i:3:p:411-419
    as

    Download full text from publisher

    File URL: http://id.erudit.org/iderudit/007259ar
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. William J. Baumol & Robert D. Willig, 1981. "Fixed Costs, Sunk Costs, Entry Barriers, and Sustainability of Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(3), pages 405-431.
    3. Ware, Roger, 1984. "Sunk Costs and Strategic Commitment: A Proposed Three-Stage Equilibrium," Economic Journal, Royal Economic Society, vol. 94(374), pages 370-378, June.
    4. J.-L. Gaffard, 1990. "Stratégies de mobilité et formes organisationnelles - Quelques repères analytiques," Revue d'Économie Industrielle, Programme National Persée, vol. 51(1), pages 226-237.
    5. Hubert Jayet & André Torre, 1994. "Études empiriques - Vie et mort des entreprises. Réflexions sur les dynamiques de renouvellement des tissus économiques," Revue d'Économie Industrielle, Programme National Persée, vol. 69(1), pages 75-91.
    6. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boone, J., 2004. "Balance of Power," Other publications TiSEM d3f8cd4b-eaf0-4c1c-aed4-5, Tilburg University, School of Economics and Management.
    2. Boone, Jan, 2004. "Balance of Power," CEPR Discussion Papers 4733, C.E.P.R. Discussion Papers.
    3. Boone, J., 2004. "Balance of power," Other publications TiSEM dcff47a3-8a29-4ec3-a752-8, Tilburg University, School of Economics and Management.
    4. Paul Nillesen & Michael Pollitt, 2011. "Ownership Unbundling in Electricity Distribution: Empirical Evidence from New Zealand," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(1), pages 61-93, January.
    5. Aslan, Hadiye & Kumar, Praveen, 2016. "The product market effects of hedge fund activism," Journal of Financial Economics, Elsevier, vol. 119(1), pages 226-248.
    6. Dasgupta Utteeyo, 2011. "Are Entry Threats Always Credible?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-41, December.
    7. Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2020. "A general model of price competition with soft capacity constraints," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(1), pages 95-120, July.
    8. Rupayan Pal & Vinay Ramani, 2017. "Will a matchmaker invite her potential rival in?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 806-819, December.
    9. Brennan, Timothy J., 2000. "The Economics of Competition Policy: Recent Developments and Cautionary Notes in Antitrust and Regulation," Discussion Papers 10716, Resources for the Future.
    10. Allain, Marie-Laure & Boyer, Marcel & Kotchoni, Rachidi & Ponssard, Jean-Pierre, 2015. "Are cartel fines optimal? Theory and evidence from the European Union," International Review of Law and Economics, Elsevier, vol. 42(C), pages 38-47.
    11. Laffont, Jean-Jacques, 1994. "The New Economics of Regulation Ten Years After," Econometrica, Econometric Society, vol. 62(3), pages 507-537, May.
    12. Christopher S. Yoo, 2017. "Avoiding the Pitfalls of Net Uniformity: Zero Rating and Nondiscrimination," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(4), pages 509-536, June.
    13. Davide Vannoni, 2000. "The diversifield firm: non formal theories versus formal models," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2000(106).
    14. Alice M. Ellyson & Anirban Basu, 2018. "The New Prescription Drug Paradox: Pipeline Pressure and Rising Prices," NBER Working Papers 24387, National Bureau of Economic Research, Inc.
    15. Cabon-Dhersin Marie-Laure & Drouhin Nicolas, 2017. "A general model of price competition with soft capacity constraints," Working Papers 2017-56, Center for Research in Economics and Statistics.
    16. David S. Evans & Michael Salinger, 2005. "Curing Sinus Headaches and Tying Law: An Empirical Analysis of Bundling Decongestants and Pain Relievers," CESifo Working Paper Series 1519, CESifo.
    17. Christos Pitelis, 2013. "Towards a More ‘Ethically Correct’ Governance for Economic Sustainability," Journal of Business Ethics, Springer, vol. 118(3), pages 655-665, December.
    18. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    19. Boone, Jan, 2002. "'Be Nice, Unless it Pays to Fight': A New Theory of Price Determination with Implications for Competition Policy," CEPR Discussion Papers 3342, C.E.P.R. Discussion Papers.
    20. Prof. Jean-Paul Chavas, 2010. "On Industry Structure and Firm Conduct in Long Run Equilibrium," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 1(1), pages 2-21, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:actuec:v:78:y:2002:i:3:p:411-419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benoit Dostie (email available below). General contact details of provider: https://edirc.repec.org/data/scseeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.