Showing 1 - 10 of 28
This discussion paper resulted in an article in the 'Journal of Industrial Economics' (2014). Volume 62, issue 3, pages 467-502.<P> Where markets are insufficiently competitive, governments can intervene by auctioninglicenses to operate or by forcing divestitures. The Dutch government has...</p>
Persistent link: https://www.econbiz.de/10011257439
, this being particularly relevant to de novo entrants as compared to entry by established firms. Current size is also found … differences, past growth matters for survival suggesting a partial adjustment process for firm size in the post entry period …. Finally, new plants are more likely to live longer if they enter growing industries or industries with little entry activity. …
Persistent link: https://www.econbiz.de/10005067401
We analyse productivity growth in UK manufacturing 1980-92 using the newly available ARD panel of establishments drawn from the Census of Production. We examine the relative importance of 'internal' restructuring (such as new technology and organizational change) and 'external' restructuring...
Persistent link: https://www.econbiz.de/10005666830
that entry and exit rates are positively correlated across industries. Our objective is to investigate the effect of sunk … costs and, in particular, market size on entry and exit rates. We analyse a stochastic dynamic model of a monopolistically … show existence and uniqueness of a stationary equilibrium with simultaneous entry and exit: efficient firms survive while …
Persistent link: https://www.econbiz.de/10005136712
vertical product differentiation and entry. Both firms face fixed set-up costs and quality-dependent costs of production, and … compete on quality and price. With identical quality-dependent costs, the incumbent will always deter entry if possible, i ….e. if fixed costs are high. Quality will be set at a level lower than the optimal quality set if entry was accommodated. If …
Persistent link: https://www.econbiz.de/10005504715
may trigger future entry and the collusive agreement is enforced by the most profitable 'grim trigger strategies …' available. It is shown that even in situations where perfect collusion can be sustained after entry, coping with a potential … entrant in a market which is growing over time may completely undermine any pre-entry collusive plans of the incumbent firms …
Persistent link: https://www.econbiz.de/10005497875
Entry requires external finance, especially for less wealthy entrepreneurs, so poor investor protection limits … voters. In a broad cross-section of countries and industries, we find that (i) entry rates and the total number of producers … accountable political institutions have better investor protection and lower entry costs. We also find that investor protection is …
Persistent link: https://www.econbiz.de/10011256887
This paper examines the effects of a competitive fringe on a regulated firm. Using Hart's (1983) model, we show that competition weakens the managerial incentives for cost reduction: when there is correlation between the cost levels of the firms in the industry, costs are higher in the regulated...
Persistent link: https://www.econbiz.de/10005067523
This paper studies the optimal regulatory policy in a market where entry may occur. The regulator regulates the … incumbent, but not the entrant in the event of entry. We show that the effect of entry on prices and incentives for cost … outcome following entry is less competitive than it would be without the possibility to commit: price is higher and incentives …
Persistent link: https://www.econbiz.de/10005067561
asymmetric firms, restructuring, and entry. We show how these welfare effects depend on the initial level of market development …, and restructuring and entry costs. The model generates an endogenous demand for infrastructure investment, and the … simulate the relative welfare effects of reducing transport, restructuring and entry costs, and we evaluate in each case the …
Persistent link: https://www.econbiz.de/10005656176