Senescent Industry Collapse Revisited

Cover Senescent Industry Collapse Revisited
Senescent Industry Collapse Revisited
S Lael Brainard
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As V. (y)-([TJ'Vo)(y) is increasing in [p'. Yo], we conclude that for all y in [p*', yo), V. (y) z'. (y)>p'' for y in Ip'-yJ, we get: VCy) = h(Min[z{a, y), y], y, a)-C * pV^(Min[z(a, y), y]) we also have for all y in [p*, yo], V. (y) 0.
Defining T, ° as the operator T, associated with zero fixed costs, and recalling that V, ° is the value of permanent lobbying with zero fixed costs, we rewrite ([TJ'Vo)(y) as ([T, °]' V^Xy) - C[l-p']/[l-p], and V, (y) as V, °(y)-C/[l-p].


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