This paper studies how sunk costs affect a financially constrained incumbent's ability to deter entry into its market. Sunk costs make it less attractive to the incumbent to accommodate entry by liquidating assets in place and exiting the market. This may render entry by a prospective rival...

The study comments on Acheampong's (2013) and finds that selective exclusion unit of analysis, estimation techniques errors and its justification cast a doubt on the results. This inaccurately represents the relationship between foreign bank entry and financial performance of domestic-owned...

The study comments on Acheampong's (2013) and finds that selective exclusion unit of analysis, estimation techniques errors and its justification cast a doubt on the results. This inaccurately represents the relationship between foreign bank entry and financial performance of domestic-owned...

This paper analyses how strategic patenting effects market concentration, entry, and competitor productivity and patenting. We introduce a new market-based classification of patent as strategic patenting and start by showing that this novel measure offers improvements over those in the extant...

We analyze optimal auction mechanisms when bidders base costly entry decisions on their valuations, and bidders pay with a fixed royalty rate plus cash. With sufficient valuation uncertainty relative to entry costs, the optimal mechanism features asymmetry so that bidders enter with strictly...

One of the most outstanding features of the trend toward globalization has been the increased importance of foreign direct investment (FDI) flows around the world. This study estimates the determinant of FDI flows using the gravity equation, controlling for the importance of both the traditional...

We study how the threat of entry affects financial contracting between an incumbent firm and a bank, in a stochastic and dynamic environment. Contracts are short term and public. We determine the effects of the first period financial contract on the first period outputs in face of the threat of...

This paper presents a theoretical framework to understand the impact of foreign bank entry on the access to and the price of credit for different types of firms. A major point of departure from the previous literature is that incumbents' information about firms is endogenous in the model;...