M-RCBG Faculty Working Paper No. 2013-08
Two Paradoxes in the Theory of Capital Investment and Competition
F.M. Scherer
September 2013
ABSTRACT
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.