EconPapers    
Economics at your fingertips  
 

Firm Growth and Failure in Increasingly Competitive Markets Theory and Application to Hospital Markets

Lee Rivers Mobley and Harry Frech

International Journal of the Economics of Business, 1994, vol. 1, issue 1, 77-93

Abstract: 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)
Date: 1994
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.tandfonline.com/10.1080/758540500 (text/html)
Access to full text is restricted to subscribers.

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:taf:ijecbs:v:1:y:1994:i:1:p:77-93

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CIJB20

DOI: 10.1080/758540500

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 ().

 
Page updated 2020-03-29
Handle: RePEc:taf:ijecbs:v:1:y:1994:i:1:p:77-93