Many have complained lately that US industries are too concentrated. Yet simple formal models of firm entry tend more to find that too MANY firms enter, not too FEW. So what theory model do these complainers have in mind? https://www.overcomingbias.com/2019/09/whats-so-bad-about-concentration.html …
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Firms entering until the expected profit is negative is a good outcome. Why would new firms care about the so called harm they do by entering the market? If a monopoly becomes a duopoly, the monopolist is harmed to the benefit of the second firm and consumers.
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That's a phrase not a model.
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converting it to a model takes all of 1 second for anyone a with a brain.
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