Options, Timing, and Regional Entry of Firms

Elisabet Berglund ()
Additional contact information
Elisabet Berglund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

No 505, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: This paper studies how the possibility to postpone the unrecoverable entry and location cost affects regional entry when post-entry earnings are uncertain. We find that the opportunity cost to enter today is higher when entering a region with high uncertainty relative to a region with low uncertainty.

Keywords: Timing; Regional uncertainty; Brownian motion (search for similar items in EconPapers)
JEL-codes: C61 D21 D84 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ind and nep-mic
Date: 1999-04-21
View list of references

Downloads: (external link)
http://www.econ.umu.se/ues/ues505.ps (application/postscript)
http://www.econ.umu.se/ues/ues505.ps.zip (application/postscript)
http://www.econ.umu.se/ues/ues505.pdf (application/pdf)
http://www.econ.umu.se/ues/ues505.pdf.zip (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:umnees:0505

Access Statistics for this paper

More papers in Umeå Economic Studies from Umeå University, Department of Economics
Address: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Contact information at EDIRC.
Series data maintained by Kjell-Göran Holmberg ().