Exit from Declining Industries: "Shakeout" or "Stakeout"?

Marvin B. Lieberman

RAND Journal of Economics, 1990, vol. 21, issue 4, 538-554

Abstract: Data on 30 chemical products are used to examine the sequence of divestment in declining industries. Small firms and plants might be expected to close first, given lack of scale economies. However, recent theories suggest that large producers may have greater incentives to exit or cut capacity. Both predictions receive some empirical support. Small plants had higher rates of closure, and most exiting firms were small. Holding the influence of plant size constant, large multiplant firms were more likely to close individual plants.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819902 ... O%3B2-E&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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: https://EconPapers.repec.org/RePEc:rje:randje:v:21:y:1990:i:winter:p:538-554

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().