HOCHBERG, YAEL V.; LJUNGQVIST, ALEXANDER; LU, YANG - In: Journal of Finance 65 (2010) 3, pp. 829-859
We examine whether strong networks among incumbent venture capitalists (VCs) in local markets help restrict entry by outside VCs, thus improving incumbents' bargaining power over entrepreneurs. More densely networked markets experience less entry, with a one-standard deviation increase in...