Entry Thresholds and Actual Entry and exit in Local Markets

M.A. Carree*, M. Dejardin

*Corresponding author for this work

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Bresnahan and reiss (1991) derive entry thresholds for local markets but do not investigate actual entry and exit flows. This paper investigates for thirteen belgian retail and consumer service industries whether markets with actual numbers of firms higher (lower) than the thresholds display exit (entry) in subsequent periods. The results confirm that over a three-year period the rate of (net) entry is positively affected by the presence of ‘market room’. The exit rate, however, does not show a negative relation with ‘market room’.
Original languageEnglish
Pages (from-to)203-212
JournalSmall Business Economics
Publication statusPublished - 1 Jan 2007


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