 An Integrative Model of Firms’ Entry DecisionsApplied Economics Quarterly (formerly: Konjunkturpolitik), 2007, vol. 53, issue 1, 45-69 Abstract: The paper presents a tractable empirical entry model that integrates strategic considerations and firms’ heterogeneity. Individual entry decisions are derived from a profit function and are specified as the outcome of a discrete game among potential entrants. Using data from a set of Portuguese manufacturing industries over a 6-years period, the estimation of the reduced form of the entry model 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. Specifically, entrants choose the structure of their labour force as an important firm-specific resource. We also find that industry structure matters greatly. Keywords: entry; firms’ heterogeneity; manufacturing; panel count data models (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:aeq:aeqaeq:v53_y2007_i1_q1_p45-69 Ordering information: This journal article can be ordered from Access Statistics for this article Applied Economics Quarterly (formerly: Konjunkturpolitik) is currently edited by Ansgar Belke, Uwe Sunde and Winfried Koeniger More articles in Applied Economics Quarterly (formerly: Konjunkturpolitik) from Duncker & Humblot, Berlin |
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