by both high entry and high exit rates. …

This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics …, to discriminate between three aspects of industry dynamics: the effect of entry and exit on market equilibrium, duration … simultaneous equilibrium model of profits, entry and exit. We find that indeed entrants play an entrepreneurial function causing …

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 …

disequilibrium but little empirical research has examined firm entry and exit in this context. We redress this by modelling the … interrelationship between firm entry and exit in disequilibrium. Introducing a new methodology we investigate whether this … new-firm entry) while in overshoots competition induced by new firms (in particular strong displacement) helps restore …

. Another important determining factor is the Herfindahl–Hirschman Index at the moment of entry: it is significantly easier to …

market decisions in the face of the threat of entry, in a dynamic model.The main results of the paper are: there exists a … threat of entry; andthere are parameter values for which the bank makes more profits with the threat of entry thanwithout. …