Entry Thresholds and Actual Entry and exit in Local Markets

M.A. Carree; M. Dejardin

doi:10.1007/s11187-006-6860-9

Entry Thresholds and Actual Entry and exit in Local Markets

M.A. Carree^*, M. Dejardin

^*Corresponding author for this work

Organisation,Strategy & Entrepreneurship

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Abstract

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 language	English
Pages (from-to)	203-212
Journal	Small Business Economics
Volume	29
DOIs	https://doi.org/10.1007/s11187-006-6860-9
Publication status	Published - 1 Jan 2007

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10.1007/s11187-006-6860-9

Cite this

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title = "Entry Thresholds and Actual Entry and exit in Local Markets",

abstract = "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 {\textquoteleft}market room{\textquoteright}. The exit rate, however, does not show a negative relation with {\textquoteleft}market room{\textquoteright}.",

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AB - 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’.

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