Entry into Local Retail Food Markets in Sweden: A Real-Options Approach

Sven-Olov Daunfeldt, Matilda Orth and Niklas Rudholm ()
Additional contact information
Niklas Rudholm: Department of Economics, Umeå University, Postal: SE-901 87 Umeå , Sverige

No 170, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: A real-options approach was used, incorporating uncertainty and irreversibility of investments, to study the number of stores entering the Swedish retail food market during the period 1994-2002. It was found that uncertainty affected the entry-decision. Entry was less frequent in highly concentrated local retail food-markets characterized by a high degree of uncertainty, whereas higher profit opportunities seem to have increased the probability of entry.

Keywords: Real options; uncertainty; retail food; entry; negative binomial regression (search for similar items in EconPapers)
JEL-codes: L13 L81 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2005-05-17
New Economics Papers: this item is included in nep-com, nep-ent and nep-ure
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Citations: View citations in EconPapers (2)

Published in Journal of Industry, Competition and Trade, 2010, pages 373-387.

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Related works:
Working Paper: Entry into Local Retail Food Markets in Sweden: A Real-Options Approach (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:gunwpe:0170

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