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The logic of increasing returns and the first-mover advantage can be overdrawn.
In 1990 I returned to the economics of increasing returns from a new direction.
But they'll have to do more in the coming year to have any hope of increasing returns.
So in a world of increasing returns, bigger firms tend to drive smaller firms out of business, until each industry is dominated by just a few players.
Yet the fact of increasing returns was always a conspicuous part of reality, and became more so as the decades went by.
Trade theorists had failed to address the role of increasing returns, not out of empirical conviction, but because they thought it was too hard to model.
Similar(17)
Therefore, that provides a free lunch in terms of increasing return while reducing risk.
MyThings, founded in 2005, claims its technology is capable of increasing return conversion rates of online retailers by more than 500%.
Merrill said, "Shares of ConocoPhillips offer the most attractive valuation levels among its peers, substantial upside earnings revision potential and the prospect of increasing return on capital employed (ROCE), in our view".
Some of the results of this study reveal that, except of food stuffs and drinks (FDT) oil, chemistry, petrochemical and its derivatives (OCP) subsectors, the production inefficiency which occurs in other subsectors due to conditions of increasing return to scale is significantly caused by the operation carried out below the optimal production scale.
But that was not at all the point of New Trade Theory, which ended up suggesting that concentration of production due to increasing returns is generally beneficial to importers as well as exporters of increasing-returns goods, that it generally reinforced the case for open trade, rather than undermining it.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com