Comparative Statics in Cournot Free Entry Equilibrium

In this paper we study the effects of a change in an exogenous variable (the fixed cost or a parameter in the demand function) on the output and the number of active firms in a Symmetric Cournot Equilibrium with Free Entry (SCEFE). The results obtained here are different from those obtained in the Cournot model with a given number of firms. In particular, an increase in demand might yield a decrease in the output of the industry.We also show that any observation on prices, profits and number of firms is compatible with the assumption that the market is in a SCEFE. If fixed costs can be observed, there is a loose relationship between the profit rate and the number of active firms. This result is used as a warning against the use of the profit rate as a measure of an anticompetitive position and against the Structure–Conduct– Performance paradigm.Publicad

The self-organization of genomes

Menzerath-Altmann law is a general law of human language stating, for instance, that the longer a word, the shorter its syllables. With the metaphor that genomes are words and chromosomes are syllables, we examine if genomes also obey the law. We find that longer genomes tend to be made of smaller chromosomes in organisms from three different kingdoms: fungi, plants, and animals. Our findings suggest that genomes self-organize under principles similar to those of human language.Peer ReviewedPostprint (author's final draft