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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
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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. 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)
  2. 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)
  3. 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)
  4. 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)
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