| Author: | Schwalbach, J. |
| Title: | Entry by diversified firms into German industries. |
| Journal: | International Journal of Industrial Organization
1987 : MAR, VOL. 5:1, p. 43-49 |
| Index terms: | ENTRY CONDITIONS DIVERSIFICATION FEDERAL REPUBLIC OF GERMANY |
| Language: | eng |
| Abstract: | Entry behaviour of diversifying firms in the Federal German manufacturing sector. The economic analysis concludes that firms enter new markets for an expected higher rate of return, where there is a growing market, and know-how can be profitably transferred to the new market. The author suggests there will be a reduced incentive to enter other markets because of economies of scale, product differentiation and market risk. But if the market ensures scope for all firms, entry deterrence strategies are less likely to be adopted by incumbent companies. Three equations and two Tables are given. The appendix lists the variables. |
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