Market Preemption and Entry Deterrence: Evidence from the Golf Course Industry
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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Volume (Year): 11 (2004)
Issue (Month): 1 ()
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