Sunk Costs, Profit Variability, and Turnover
AbstractDynamic competitive models of industry evolution suggest that firm profit will be more volatile, and turnover lower, in industries with higher sunk costs. These implications are consistent with empirical observation. (JEL L00) Copyright 2006, Oxford University Press.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 44 (2006)
Issue (Month): 2 (April)
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- Riccardo DiCecio & Levon Barseghyan, 2010.
"Entry Costs, Industry Structure, and Cross-Country Income and TFP Differences,"
2010 Meeting Papers
964, Society for Economic Dynamics.
- Barseghyan, Levon & DiCecio, Riccardo, 2011. "Entry costs, industry structure, and cross-country income and TFP differences," Journal of Economic Theory, Elsevier, vol. 146(5), pages 1828-1851, September.
- Adelina Gschwandtner & Val E. Lambson, 2009. "Sunk Entry Costs, Sunk Depreciation costs, and Industry Dynamics," Vienna Economics Papers 0902, University of Vienna, Department of Economics.
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