In many industries, firms usually have two choices when expanding into new markets: They can either build a new plant (greenfield entry) or they can acquire an existing incumbent. In the U.S. cement industry, the comparative advantage (e.g., TFP or size) of entrants versus incumbents and...

In many industries firms can enter into new markets either by building a new plant (greenfield entry) or by acquiring an existing incumbent facility. The structural empirical literature on entry has usually ignored acquisitions as an option for entrants. Understanding what drives this decision...