Firm Growth and Failure in Increasingly Competitive Markets Theory and Application to Hospital Markets
Lee Rivers Mobley and
International Journal of the Economics of Business, 1994, vol. 1, issue 1, 77-93
Recent models of firm failure and growth have ignored demand factors. In this paper, we generalize these theoretical analyses to include demand factors in explaining failure and growth for heterogeneous firms in local markets facing imperfect but increasing competition. The model is then applied empirically to the hospital industry in California over the 1980s, during which time competition did intensify. We model the closure decision based on expectations of future growth, explicitly accounting for self selection and simultaneity. We find that both size and demand factors are important determinants of survival and growth
Keywords: Closure; Growth; Survivor analysis; Hospitals; Scale economies; Competition, I11, L11, L31, L44, L84, O24, (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:ijecbs:v:1:y:1994:i:1:p:77-93
Ordering information: This journal article can be ordered from
Access Statistics for this article
International Journal of the Economics of Business is currently edited by Eleanor Morgan
More articles in International Journal of the Economics of Business from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().