search query: @author Shapiro, D. / total: 8
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| Author: | Shapiro, D. Khemani, R. S. |
| Title: | The determinants of entry and exit reconsidered. |
| Journal: | International Journal of Industrial Organization
1987 : MAR, VOL. 5:1, p. 15-26 |
| Index terms: | ENTRY CONDITIONS MARKET STRUCTURE CANADA |
| Language: | eng |
| Abstract: | An analysis, using Canadian cross section data, to empirically examine the hypothesis that there is a symmetrical relationship between entry and exit barriers. In the first stage, the entry and exit equations are estimated that ignore the possibility that displacement occurs, that is entry causes exit. The results indicate there is symmetry in the entry and exit determinants, but the exit equation is misspecified. In the second stage, a model is estimated in which entrants displace incumbents, that cause exit. The results indicate less symmetry, due to the absence of entry barriers, entry occurs and incumbents are displaced. The authors conclude that symmetry exists, but in the ex-ante sense. |
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