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‘Entry Thresholds and Actual Entry and Exit in Local Markets’

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Author Info
Martin Carree ()
Marcus Dejardin ()

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Abstract

Bresnahan and Reiss (1991) derive entry thresholds for local markets but do not investigate actual entry and exit flows. This paper investigates for thirteen Belgian retail and consumer service industries whether markets with actual numbers of firms higher (lower) than the thresholds display exit (entry) in subsequent periods. The results confirm that over a three-year period the rate of (net) entry is positively affected by the presence of ‘market room’. The exit rate, however, does not show a negative relation with ‘market room’. Copyright Springer 2007

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File URL: http://hdl.handle.net/10.1007/s11187-006-6860-9
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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 29 (2007)
Issue (Month): 1 (June)
Pages: 203-212
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:sbusec:v:29:y:2007:i:1:p:203-212

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Web page: http://www.springerlink.com/link.asp?id=100338

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Related research
Keywords: Entry; exit; entry thresholds; ordered probit; L80; R12;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Geroski, P. A. & Masson, R. T., 1987. "Dynamic market models in industrial organization," International Journal of Industrial Organization, Elsevier, vol. 5(1), pages 1-13, March. [Downloadable!] (restricted)
  2. Carree, M. A. & Thurik, A. R., 1999. "The carrying capacity and entry and exit flows in retailing," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 985-1007, October. [Downloadable!] (restricted)
  3. Javier Miranda & Shawn Klimek & Ron Jarmin, 2004. "Firm Entry and Exit in the U.S. Retail Sector, 1977-1997," Working Papers 04-17, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  4. Daniel Serra & Charles Revelle & Ken Rosing, 1999. "Surviving in a Competitive Spatial Market: The Threshold Capture Model," Economics Working Papers 359, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  5. D.B. Audretsch & Luuk Klomp & A.R. Thurik, 1998. "Do Services differ from Manufacturing? The Post-Entry Performance of Firms in Dutch Services," Tinbergen Institute Discussion Papers 98-012/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  6. Catherine Armington & Zoltan J. Acs, 2002. "The Determinants of Regional Variation in New Firm Formation," Regional Studies, Taylor and Francis Journals, vol. 36(1), pages 33-45, February. [Downloadable!] (restricted)
  7. Jeffrey R. Campbell & Hugo A. Hopenhayn, 2005. "Market Size Matters," Journal of Industrial Economics, Blackwell Publishing, vol. 53(1), pages 1-25, 03. [Downloadable!] (restricted)
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  8. Asplund, Marcus & Sandin, Rickard, 1999. "The Number of Firms and Production Capacity in Relation to Market Size," Journal of Industrial Economics, Blackwell Publishing, vol. 47(1), pages 69-85, March. [Downloadable!] (restricted)
  9. David Dranove & Mark Shanley & Carol Simon, 1992. "Is Hospital Competition Wasteful?," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 247-262, Summer. [Downloadable!] (restricted)
  10. Schmalensee, Richard, 1992. "Sunk Costs and Market Structure: A Review Article," Journal of Industrial Economics, Blackwell Publishing, vol. 40(2), pages 125-34, June. [Downloadable!] (restricted)
  11. Bresnahan, Timothy F & Reiss, Peter C, 1991. "Entry and Competition in Concentrated Markets," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 977-1009, October. [Downloadable!] (restricted)
    Other versions:
  12. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gries, Thomas & Naude, Wim, 2008. "Entrepreneurship and Regional Economic Growth: Towards A General Theory of Start-Ups," Working Papers RP2008/70, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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