Plant Closings and Exit Behaviour in Declining Industries
AbstractThe plant closing and exit strategies of firms operating in a declining industry are examined. A dynamic, game-theoretic model is utilized. The perfectness criterion is used to restrict the set of Nash equilibria. There are two key equilibrium results. First, when firms have the same number of plants, high-cost plants close before lower-cost plants. Second, a larger firm (i.e., a firm operating more plants) begins closing plants before a smaller firm, as long as cost differences are not large. Copyright 1988 by The London School of Economics and Political Science.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 55 (1988)
Issue (Month): 220 (November)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Amir R. & Halmenschlager C., 2008.
"R&D-Induced Industry Polarization and Shakeouts,"
Working Papers ERMES
0802, ERMES, University Paris 2.
- Kräkel, Matthias, 2010.
"Shutdown Contests in Multi-Plant Firms and Governmental Intervention,"
IZA Discussion Papers
4852, Institute for the Study of Labor (IZA).
- Matthias Kräkel, 2010. "Shutdown Contests in Multi-Plant Firms and Governmental Intervention," Bonn Econ Discussion Papers bgse03_2010, University of Bonn, Germany.
- Gamal Atallah, 2002.
"Opportunity Costs, Competition, and Firm Selection,"
- Gamal Atallah, 2006. "Opportunity Costs, Competition, and Firm Selection," International Economic Journal, Taylor & Francis Journals, vol. 20(4), pages 409-430.
- Gamal Atallah, 2002. "Opportunity Costs, Competition, and Firm Selection," CIRANO Working Papers 2002s-74, CIRANO.
- H. Van Kranenburg & F. Palm & G. Pfann, 2002. "Exit and Survival in a Concentrating Industry: The Case of Daily Newspapers in the Netherlands," Review of Industrial Organization, Springer, vol. 21(3), pages 283-303, November.
- Guimaraes, Paulo & Mata, José & Portugal, Pedro, 1995.
"The Survival of New Plants: Start-up Conditions and Post-entry Evolution,"
CEPR Discussion Papers
1203, C.E.P.R. Discussion Papers.
- Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December.
- J. Bradford Jensen & Andrew Bernard, 2005.
"Firm Structure, Multinationals, and Manufacturing Plant Deaths,"
05-18, Center for Economic Studies, U.S. Census Bureau.
- Andrew B Bernard & J. Bradford Jensen, 2007. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 193-204, May.
- Andrew B. Bernard & J. Bradford Jensen, 2006. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," Working Paper Series WP06-7, Peterson Institute for International Economics.
- Colin Wren & Jonathan Jones, 2003. "Re-investment, Survival and the Embeddedness of Foreign-Owned Plants," ERSA conference papers ersa03p19, European Regional Science Association.
- John Sutton, 1996. "Gibrats Legacy," STICERD - Economics of Industry Papers 14, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.