Entry and Competition in a Transition Economy: The Case of Slovakia

Martin Lábaj, Peter Silaniè () and Christoph Weiss
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Peter Silaniè: University of Economics in Bratislava, Faculty of National Economy, Department of Economic Policy

No 3, Department of Economic Policy Working Paper Series from Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava

Abstract: The present paper provides first empirical evidence on the effects of entry on market conduct for a transition economy. We estimate size thresholds required to support different numbers of firms for seven retail and professional service industries in a large number of distinct geographic markets in Slovakia. Our results suggest a differential impact of entry on market conduct: while market conduct is unaffected by entry in the north-western parts of Slovakia, competition tends to kick in slowly in most professions in the south-east. This latter region suffers from infrastructure bottlenecks and competitors require a larger increase in the number of customers to come in.

Keywords: entry thresholds; competition; Slovakia; cross section; geographic markets (search for similar items in EconPapers)
JEL-codes: D22 L22 M13 R11 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2013-01-31
New Economics Papers: this item is included in nep-com, nep-ind and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:brt:depwps:003

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