Entry Thresholds and Actual Entry and Exit in Local Markets

Martin Carree () and Marcus Dejardin ()

Small Business Economics, 2007, vol. 29, issue 1, pages 203-212

Abstract: Bresnahan and Reiss (1991) derive entry thresholds for local markets but do not investigate actual entry and exit flows. This paper investigates for thirteen Belgian retail and consumer service industries whether markets with actual numbers of firms higher (lower) than the thresholds display exit (entry) in subsequent periods. The results confirm that over a three-year period the rate of (net) entry is positively affected by the presence of ‘market room’. The exit rate, however, does not show a negative relation with ‘market room’. Copyright Springer 2007

Keywords: Entry; exit; entry thresholds; ordered probit; L80; R12 (search for similar items in EconPapers)

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Related works:
Working Paper: Entry thresholds and actual entry and exit in local markets (2004)
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