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We propose that multinational firms learn about their profitability in a particular market by observing their performance in nearby markets. We first develop a model of firm expectations formation with noisy signals from multiple markets and derive predictions on expectations formation and...
Persistent link: https://www.econbiz.de/10012825991
demand. The former learning effect, combined with the latter real-options effect, adversely affect firms' entry decisions and …
Persistent link: https://www.econbiz.de/10012826001