M-RCBG Faculty Working Paper No. 2013-08

Two Paradoxes in the Theory of Capital Investment and Competition

F.M. Scherer

September 2013


On many occasions during my long experience as a teacher of economics, I have been puzzled by the disparity between what our textbooks propound and the real world. Here I discuss two such paradoxes that have been particularly persistent and attempt at least a partial explanation.

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