Publicação
What drives new firms into an industry? an integrative model of entry
| Resumo: | The paper focuses on the theoretical and empirical formulation of an entry model that integrates strategic considerations and firms' heterogeneity. Entry decisions are derived from a profit function, and, subsequently, the number of entrants is defined as the sum of firms that have effectively decided to enter a given industry. As the aggregation of individual entry decisions yields a discrete outcome, the econometric methodology is based on panel count data models, rendering a novel departure from previous works. The results suggest that both incumbents' behaviour towards entry and firm-specific characteristics provide additional and interesting insights in understanding entry. |
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| Autores principais: | Barbosa, Natália |
| Assunto: | Entry Firms' heterogeneity Manufacturing Panel count data models |
| Ano: | 2003 |
| País: | Portugal |
| Tipo de documento: | working paper |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade do Minho |
| Idioma: | inglês |
| Origem: | RepositóriUM - Universidade do Minho |
| Resumo: | The paper focuses on the theoretical and empirical formulation of an entry model that integrates strategic considerations and firms' heterogeneity. Entry decisions are derived from a profit function, and, subsequently, the number of entrants is defined as the sum of firms that have effectively decided to enter a given industry. As the aggregation of individual entry decisions yields a discrete outcome, the econometric methodology is based on panel count data models, rendering a novel departure from previous works. The results suggest that both incumbents' behaviour towards entry and firm-specific characteristics provide additional and interesting insights in understanding entry. |
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