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Over recent years `opportunity cost' (OC) models of growth have been constructed which suggest that firms take …
Persistent link: https://www.econbiz.de/10005666892
This paper investigates why firms choose to undertake product expansion through alliances with competitors rather than on their own.
Persistent link: https://www.econbiz.de/10005011658
growth, while we consistently find that they do not underperform in terms of profitability, our study provides no support for …
Persistent link: https://www.econbiz.de/10010334740
Advanced market economies are characterized by a continuous process of creativedestruction. Market forces and technological developments play a major role in shaping thisprocess, but institutional and policy settings also influence firms´ decision to enter, to expandif successful and to exit if...
Persistent link: https://www.econbiz.de/10005861084
discontinuous growth can be based on a couple of assumptions:(a) in the short run, the firm's equipment and organization provide the … different locally optimal size. Secondly, when demand is growing, investment are expected to increase just in those firms where … apparent between investment and profitability, controlling for the size of firms …
Persistent link: https://www.econbiz.de/10013066084
In this paper we test both sunk cost and strategic size liability predictions by looking at the exit behavior of a sample of Italian manufacturing plants. For this purpose, we focus on plants' size and ownership status. In particular, we distinguish independent plants from plants that belong to...
Persistent link: https://www.econbiz.de/10012764707
We develop a two-period model of bundling strategy when a monopolistic firm faces uncertain demand in the second period. We examine the effect of intertemporal bundling on market outcomes in three cases: when the monopolist offers bundling without an option to purchase an individual future...
Persistent link: https://www.econbiz.de/10012751499
successful. Both private credit and stock market capitalization are important for promoting entry and post entry growth of firms … entry of new (especially small) firms and the post-entry growth of successful young businesses. …
Persistent link: https://www.econbiz.de/10005233782
paper on consumer durables. The model suggests that the repurchase process is governed by preferential growth. Applying … consequence the size distribution of business units is a lognormal distribution, while the growth rates are also given by a …
Persistent link: https://www.econbiz.de/10009323245
equilibrium allocation in Hopenhayn (1992)’s model of equilibrium industry dynamics, amended to allow for investment in physical … idiosyncratic productivity is mean-reverting, mean and variance of the distribution of productivity growth are pro-cyclical …
Persistent link: https://www.econbiz.de/10014182388