IDEAS home Printed from https://ideas.repec.org/a/sej/ancoec/v751y2008p159-172.html
   My bibliography  Save this article

Entry Strategies of Partnerships versus Conventional Firms

Author

Listed:
  • Michele Moretto

    () (Dipartimento di Scienze Economiche, University of Padova, via del Santo, 33, Padova, Italy)

  • Gianpaolo Rossini

    () (Dipartimento di Scienze Economiche, University of Bologna, Strada Maggiore, 45, Bologna, Italy)

Abstract

From 1997 to 2001 the number of nonemployer businesses, mostly partnerships, grew faster than conventional firms in the United States, a country with the mildest asymmetries between the two types of enterprises with respect to taxation, administrative entry barriers, and other institutional aspects. Partnerships are smaller than conventional firms, and their different speeds of net entry could be the result of internal organization that makes them swifter and better equipped to be fast-growing industries. In a continuous-time stochastic environment with sunk costs, we model entry as a growth option. Partnerships and conventional firms display specific patterns in terms of output price and size in that they appear to react in diverse fashions to market uncertainty. In most cases, the partnership is less risky and better suited to enter under conditions of high volatility, as between 1997 and 2001 in the United States.

Suggested Citation

  • Michele Moretto & Gianpaolo Rossini, 2008. "Entry Strategies of Partnerships versus Conventional Firms," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 159-172, July.
  • Handle: RePEc:sej:ancoec:v:75:1:y:2008:p:159-172
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:75:1:y:2008:p:159-172. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini). General contact details of provider: http://edirc.repec.org/data/seaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.