Sunk Costs and the Dynamics of Entry in Portuguese Manufacturing
Détails
ID Serval
serval:BIB_9991F1D878C3
Type
Partie de livre
Collection
Publications
Institution
Titre
Sunk Costs and the Dynamics of Entry in Portuguese Manufacturing
Titre du livre
Market Evolution: Competition and Cooperation
Editeur
Springer Netherlands
ISBN
978-90-481-4523-2
978-94-015-8428-9
978-94-015-8428-9
Statut éditorial
Publié
Date de publication
1995
Volume
20
Série
Studies in Industrial Organization
Pages
267-284
Langue
anglais
Résumé
This chapter studies entry dynamics in Portugal in the period 1982-86. The findings are that (i) entry and exit are deterred by economies of scale and product differentiation and (ii) sunk costs are only important to the displacement process in which less efficient firms are replaced by more efficient ones. Long-run industry structure appears to depend on the number of efficiently scaled plants that markets can accommodate, whereas the speed of convergence towards the long-run equilibrium depends on past profits and the degree of cost sunkness. Speed of convergence, long-run profits and market volatility are found to be correlated significantly.
Création de la notice
28/04/2017 14:50
Dernière modification de la notice
20/08/2019 15:01