Sunk Costs, Profit Variability, and Turnover

Adelina Gschwandtner and Val Lambson

Economic Inquiry, 2006, vol. 44, issue 2, 367-373

Abstract: Dynamic competitive models of industry evolution suggest that firm profit will be more volatile, and turnover lower, in industries with higher sunk costs. These implications are consistent with empirical observation. (JEL L00) Copyright 2006, Oxford University Press.

JEL-codes: L00 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (10)

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