Entry into Local Retail Food Markets in Sweden: A Real-Options Approach
A 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.
|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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