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 …

How does firm entry affect innovation incentives and productivity growth in incumbent firms? Micro-data suggests that … there is heterogeneity across industries - incumbents in technologically advanced industries react positively to entry, but … not in laggard industries. To explain this pattern, we introduce entry into a Schumpeterian growth model with multiple …

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? …