Entry into Local Retail Food Markets in Sweden: A Real-Options Approach
AbstractA real-options approach was used, incorporating uncertainty and irreversibility of investments, to study the number of stores entering the Swedish retail food market during the period 1994-2002. It was found that uncertainty affected the entry-decision. Entry was less frequent in highly concentrated local retail food-markets characterized by a high degree of uncertainty, whereas higher profit opportunities seem to have increased the probability of entry.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 170.
Length: 27 pages
Date of creation: 17 May 2005
Date of revision:
Publication status: Published in Journal of Industry, Competition and Trade, 2010, pages 373-387.
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Real options; uncertainty; retail food; entry; negative binomial regression;
Other versions of this item:
- Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2007. "Entry into Local Retail Food Markets in Sweden: A Real-Options Approach," HUI Working Papers 1, HUI Research.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-23 (All new papers)
- NEP-COM-2005-05-23 (Industrial Competition)
- NEP-ENT-2005-05-23 (Entrepreneurship)
- NEP-URE-2005-05-23 (Urban & Real Estate Economics)
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.:
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"Entry into Swedish Retail- and Wholesale Trade Markets,"
UmeÃ¥ Economic Studies
599, Umeå University, Department of Economics.
- Sven-olov Daunfeldt & Niklas Rudholm & Fredrik Bergström, 2006. "Entry into Swedish Retail and Wholesale Trade Markets," Review of Industrial Organization, Springer, vol. 29(3), pages 213-225, November.
- Daunfeldt, Sven-Olov & Rudholm, Niklas & Bergström, Fredrik, 2005. "Entry into Swedish Retail and Wholesale Trade Markets," HUI Working Papers 2, HUI Research.
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- Daunfeldt, Sven-Olov & Rudholm, Niklas, 2006.
"Revenues as a Proxy for Profits: A Cautionary Note,"
HUI Working Papers
5, HUI Research.
- Sven-Olov Daunfeldt & Niklas Rudholm, 2009. "Revenues as a proxy for profits: a cautionary note," Applied Economics Letters, Taylor & Francis Journals, vol. 16(7), pages 679-681.
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