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We study the impact of learning-by-doing with spillovers in competitive markets with free market entry. Within a two period model, we consider first the case where fixed costs are incurred only once, and entry is once and for all. In the second case fixed costs are incurred in each period, and...
Persistent link: https://www.econbiz.de/10002817446
New entrants very often spin out from established firms and because they set on a course at founding, their learning and capabilities become inextricably linked to their organizational and technological heritage. But while this heritage may provide an initial advantage, it can also generate...
Persistent link: https://www.econbiz.de/10014177934
This paper examines the maturation process of firms that enter an industry by constructing new plants and investigates the extent to which improvements in the performance of an entry cohort are the result of a selection process that culls out the most inefficient entrants or of a learning...
Persistent link: https://www.econbiz.de/10014080179
Retailers may face uncertainty about the profitability of local markets, which provide opportunities for learning when making entry decisions. To quantify these informational benefits, I develop an empirical framework for studying dynamic retail entry with uncertainty and learning (from others)....
Persistent link: https://www.econbiz.de/10012905791
This paper examines the strategic behavior of hospitals in one of their primary output markets: inpatient surgical procedures. High levels of learning-by-doing in surgical fields may act as a barrier to entry. I investigate whether incumbent hospitals facing prospective entry in a procedure...
Persistent link: https://www.econbiz.de/10013222631
Timing of market entry is one of the most important strategic decisions a firm must make, but its decision process becomes convoluted with information and payoff spillovers. The threat of competition pushes firms to enter earlier to preempt their rivals while the possibility of learning make...
Persistent link: https://www.econbiz.de/10013230912
Empirical data suggest that new firms tend to grow faster than incumbent firms in terms of their productivity. A sticky-price model with learning-by-doing in new firms fits this data and predicts that for plausible calibrations, the optimal long-run inflation rate is positive and between 0.5%...
Persistent link: https://www.econbiz.de/10010342838
This paper examines the strategic behavior of hospitals in one of their primary output markets: inpatient surgical procedures. High levels of learning-by-doing in surgical fields may act as a barrier to entry. I investigate whether incumbent hospitals facing prospective entry in a procedure...
Persistent link: https://www.econbiz.de/10012468826
This paper studies aggregate dynamics in a cobweb model where learning takes place through a selection mechanism, by which more successful firms are replicated at a higher rate. The structure of the model allows to characterize analytically the aggregate dynamics, and to compute the effect on...
Persistent link: https://www.econbiz.de/10010440555
Empirical evidence suggests that entrepreneurs make mistakes: too many enter markets and, once there, persist too long. While scholars have largely settled on behavioral bias as the cause, we suggest that this consensus is premature. These mistakes may also arise from a process in which...
Persistent link: https://www.econbiz.de/10012924966