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Market Preemption and Entry Deterrence: Evidence from the Golf Course Industry

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  • Stephen Shmanske
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    Abstract

    The population in a given geographical area has to be large enough before the area can support the entry of a golf course. The required amount of population will be higher if costs are higher, or if the underlying demand to golf by residents is lower, or if there is more preexisting competition from incumbent golf courses. If incumbent golf courses undertake entry-deterring strategies, either explicitly or implicitly, the required population will be higher still. If population is expected to grow quickly, then the amount of population required by the entry date could be lower. These effects are measured and analyzed in this empirical study of the entry of 104 golf courses in the greater San Francisco Bay Area between 1893 and 2001.

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    File URL: http://www.tandfonline.com/10.1080/1357151032000172237
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.

    Volume (Year): 11 (2004)
    Issue (Month): 1 ()
    Pages: 55-68

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    Handle: RePEc:taf:ijecbs:v:11:y:2004:i:1:p:55-68

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    Web page: http://www.tandfonline.com/CIJB20

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    Related research

    Keywords: Preemptive Entry; Entry Deterrence; Golf Course Economics; Subsidized Pricing; Municipal Golf; Privatization; L11; L33; L83; D43;

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    Cited by:
    1. Frank Limehouse & Michael Maloney & Kurt Rotthoff, 2012. "Peak-Load Versus Discriminatory Pricing: Evidence from the Golf Industry," Review of Industrial Organization, Springer, vol. 40(3), pages 151-165, May.
    2. Wolfgang Sofka & Tobias Schmidt, 2005. "I Like the Way you Move - An Empirical Investigation into the Mechanisms Behind First Mover and Follower Strategies," Industrial Organization 0506010, EconWPA.

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