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We consider a mean-field model of firms competing \`a la Cournot on acommodity market, where the commodity price is given in terms of a powerinverse demand function of the industry-aggregate production. Investment isirreversible and production capacity depreciates at a constant rate. Productionis subject to Gaussian productivity shocks, while large non-anticipatedmacroeconomic events driven by a two-state continuous-time Markov chain canchange the volatility of the shocks, as well as the price function. Firms wishto maximize expected discounted revenues of production, net of investment andoperational costs. Investment decisions are based on the long-run stationaryprice of the commodity. We prove existence, uniqueness and characterization ofthe stationary mean-field equilibrium of the model. The equilibrium investmentstrategy is of barrier-type and it is triggered by a couple of endogenouslydetermined investment thresholds, one per state of the economy. We provide aquasi-closed form expression of the stationary density of the state and we showthat our model can produce Pareto distribution of firms' size. This is afeature that is consistent both with observations at the aggregate level ofindustries and at the level of a particular industry. We establish a relationbetween economic instability and market concentration and we show howmacroeconomic instability can harm firms' profitability more than productivityfluctuations.

A Stationary Mean-Field Equilibrium Model of Irreversible Investment in a Two-Regime Economy