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 HUI Research in its series HUI Working Papers with number 1.
Length: 27 pages
Date of creation: 22 Feb 2007
Date of revision:
Publication status: Published as Daunfeldt, Sven-Olov, Matilda Orth and Niklas Rudholm, 'Entry into Local Retail Food Markets in Sweden: A Real-Options Approach' in Journal of Industry, Competition and Trade, 2010, pages 15.
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Real options; uncertainty; retail food; entry; negative binomial regression;
Other versions of this item:
- Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2005. "Entry into Local Retail Food Markets in Sweden: A Real-Options Approach," Working Papers in Economics 170, University of Gothenburg, Department of Economics.
- 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-AGR-2007-03-03 (Agricultural Economics)
- NEP-ALL-2007-03-03 (All new papers)
- NEP-COM-2007-03-03 (Industrial Competition)
- NEP-IND-2007-03-03 (Industrial Organization)
- NEP-URE-2007-03-03 (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.:
- Daunfeldt , Sven-Olov & Rudholm, Niklas & Bergström, Fredrik, 2002.
"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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- de Juan, Rebeca, 2003. "The independent submarkets model: an application to the Spanish retail banking market," International Journal of Industrial Organization, Elsevier, vol. 21(10), pages 1461-1487, December.
- 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 and Francis Journals, vol. 16(7), pages 679-681.
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