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 …

Firm entry and exit is a part of the market selection process by which resources are reallocated within or across … industries. The process of entry and exit influences economic performance through firms' internal restructuring, reallocation of … destruction process is the predominant factor driving entry and exit in many manufacturing industries. Moreover, the combination …

a new class of trade models: the New New Trade Theory which accounts for firm heterogeneity and market entry costs. The …

-trade models involving heterogeneous firms, we further find that the effect of exchange-rate movements and tariff cuts on exit are …- controlled plants. Exporters and foreign-owned plants have much lower failure rates; however, their survival is more sensitive to …

of a new class of trade models: the New New Trade Theory which accounts for firm heterogeneity and market entry costs …

Many newly emerging industries show similar patterns of development regarding entry and exit dynamics. This paper … argues that several features of exit and new entry into industries through diversification and spinoff formation can be …

subsequent entry plays a primary role in generating turbulence in high growth markets, while displacement of incumbents by recent … entrants is the main selection force in declining markets. As product life cycles progress, trial-and-error entry subsides, and …