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 InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2006.
Date of creation: 2007
Date of revision:
capital structure; irreversibility; preemption; real options;
Other versions of this item:
- Paolo M. Panteghini & Michele Moretto, 2007. "Preemption, Start-Up Decisions and the Firms' Capital Structure," Economics Bulletin, AccessEcon, vol. 4(39), pages 1-14.
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
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