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 …

for a variety of market structures, including markets with and without barriers to entry and markets characterized by … degree of product substitutability, with or without free entry, increases R&D effort – provided that the total market for …

In industries with network effects, incumbents’ installed bases create barriers to entry that discourage entrepreneurs … from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the …

within a region, explicitly taking into account exit, as well as entry, costs. Protecting workers by having strict lay … influence the entry decision? …