Preemption, Start-Up Decisions and the Firms' Capital Structure
AbstractIn this article, we analyse the interactions between financial and start-up decisions in an oligopolistic framework, where firms compete to enter a new market. We show that preemption can substantially reduce the negative effects of credit rationing on start-up investment decisions.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 4 (2007)
Issue (Month): 39 ()
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Other versions of this item:
- Michele Moretto & Paolo Panteghini, 2007. "Preemption, Start-Up Decisions and the Firms’ Capital Structure," CESifo Working Paper Series 2006, CESifo Group Munich.
- D9 - Microeconomics - - Intertemporal Choice
- G3 - Financial Economics - - Corporate Finance and Governance
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