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

Sven-Olov Daunfeldt, Matilda Orth and Niklas Rudholm ()
Additional contact information
Niklas Rudholm: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, SE-103 29 Stockholm, Sweden

No 1, HUI Working Papers from HUI Research

Abstract: 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.

Keywords: Real options; uncertainty; retail food; entry; negative binomial regression (search for similar items in EconPapers)
JEL-codes: L13 L81 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2007-02-22
New Economics Papers: this item is included in nep-agr, nep-com, nep-ind and nep-ure
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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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Working Paper: Entry into Local Retail Food Markets in Sweden: A Real-Options Approach (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:huiwps:0001

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