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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
, 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 investigate the timing and the valuation of strategic investment aimed at enhancing entry opportunities in related … market segments. As demand is uncertain, entry options should be exercised at the optimal time, trading off the market share … gain against the option to wait until more information is revealed, while anticipating competitors' entry behaviour. When …
Persistent link: https://www.econbiz.de/10005662306
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
We are interested in evaluating the impact of restrictive planning regulation on entry into the UK grocery retail …
Persistent link: https://www.econbiz.de/10005788990
Preventives are sold ex ante, before disease status is realized, while treatments are sold ex post. Even if the mean of the ex ante distribution of consumer values is the same as that ex post, the shape of the distributions may differ, generating a difference between the surplus each product can...
Persistent link: https://www.econbiz.de/10011196028
Cross-country variability in regulatory frameworks, industrial policy, physician/pharmacy autonomy, brand/generic distinctions, and in the practice of medicine contributes to ambiguous interpretations of pharmaceutical cost comparisons. Here we report cross-country comparisons that: (i) focus on...
Persistent link: https://www.econbiz.de/10011083891
Until 1970, the New York Stock Exchange prohibited public incorporation of member firms. After the rules were relaxed to allow joint stock firm membership, investment-banking concerns organized as partnerships or closely-held private corporations went public in waves, with Goldman Sachs (1999)...
Persistent link: https://www.econbiz.de/10005656352
with firms’ innovation and entry decisions, which determine the economy’s growth rate. To study this link between … relationship between growth, misallocation and welfare. It stresses the importance of entry. An increase in entry reduces … misallocation by fostering competition. If entry also increases the economy-wide growth rate, static misallocation and growth are …
Persistent link: https://www.econbiz.de/10010884565
This paper develops an empirical model of entry to analyze the effect of previous regulation on European airlines? post …
Persistent link: https://www.econbiz.de/10010928653