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| Author: | Noche, V. |
| Title: | A gap for me: enterpreneurs and entry |
| Journal: | Journal of the European Economic Association
2006 : SEP, VOL. 4:5, p. 929-956 |
| Index terms: | competition entrepreneurship entry conditions market entry |
| Language: | eng |
| Abstract: | This paper presents a theory of entrepreneurial entry and exit decisions. According to the authors, each entrant in a large market is more efficient than any entrepreneur in a smaller market because competition is endogenously more intense in larger markets, thereby incurring a unit transport cost or tariff. The sorting and price competition effect indicate that the number of entrants may actually be smaller in larger markets. |
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