Competition Policy and Exit Rates: Evidence from Switzerland
AbstractThis paper provides evidence on the relation between the intensity of product-market competition and the probability of exit. We adopt a natural experiment approach to analyze the impact of a tightening of Swiss antitrust legislation on exit probabilities. Based on a sample of more than 68,000 firms from all major sectors of the Swiss economy, we find that the exit probability of non-exporting firms increased significantly, whereas the exit probability of exporting firms remained largely unaffected. Our results support the notion that there is a positive relationship between the intensity of product-market competition and the probability of exit.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.
Volume (Year): 4 (2005)
Issue (Month): 1 (November)
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Web page: http://www.degruyter.com
Other versions of this item:
- Stefan Buehler & Christian Kaiser & Franz Jaeger, 2004. "Competition Policy and Exit Rates: Evidence from Switzerland," Working Papers 0405, University of Zurich, Socioeconomic Institute, revised Apr 2005.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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