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John Perkins's sensational ny occasions bestseller Confessions of an monetary Hit guy (more than 300,000 bought) published simply the end of the iceberg of the key global of financial hit males and the net of worldwide corruption. Now extra monetary hit males and investigators inform the entire surprising tale.

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Extra resources for A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption

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Entry prevention thus becomes more difficult. If the cost structure is such that expansion of firm size beyond the optimum raises average cost, en- 56 try cannot be prevented. Too much internal growth of incumbent firms puts them into a cost disadvantage compared to entrants who enter at optimum size and who therefore cannot be discouraged to enter. But if, due to market growth, it is futile to prevent entry, it will occur at a time such that incumbent firms only can expect average returns on their investments.

Thus, every day the competion between yesterday's incumbents and new entrants starts afresh and the two groups are indistinguishable. What will happen? Analytically this situation is best described by a noncooperative game. Assume there are potential entrants, each of them in the same position. They have two possible strategies: entry or nonentry. Every morning, they have to decide independently, whether or not to enter. If more then one enter, each of them will pay the costs of producing, and they will decide, how much to produce within an oligopolistic framework.

For, by definition of f (where ~ are the profits) ~(g(f(8») for all available f. <= ~(g(f(8»» Hence, since f(f) is an available f for any avail- able f, ~ (g* (8» ~(g(f(8») <= ~(g(f(f(8»» ~ * A (g (f (8») for all available f. To put it in words: if the government itself applies the profit maximizing information distortion on the information received,then the 39 firm must not distort the information provided to the government, because otherwise the distortion operator would be applied once too much.

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