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Efficiencies and free-entry are also studied in Cabral (2003), who states that a merger defense based on cost efficiencies changes if post-merger entry is allowed, because there is a more efficient firm.
Others hold that the optimum size of the efficient firm is substantially smaller than many people believe.
The hope, instead, is that contracts will be awarded to the most efficient firm, which will improve the quality of public services and lower their cost.
We establish a model with heterogeneous multinational firms and show that (a) the LCR policy affects the firms' modes of entry to a new market, with FDI being more likely to be adopted when there are lower LCRs, and (b) when facing the same LCR, a less efficient firm is more likely than a more efficient firm to adopt the FDI mode.
But the evidence does not support it: increasing size does not always make a more efficient firm, and governments have a mixed record when it comes to picking winners.
But opponents counter that an efficient firm, run on technical not political lines, has been destroyed.The government has an ambitious plan to expand oil output to 5m bpd by 2009, mainly by bringing in foreign state-owned oil firms.
Similar(54)
The less efficient firms and the relative efficiency of the firms are calculated in terms of scores on a scale of 0 1.
Efficient firms should enter the market.
Efficient firms are prevented from taking over sluggish ones.
The more efficient firms would prosper and the weak would fall by the wayside.
The risk is that instead of clearing the system and promoting the most efficient firms, the crisis is helping the least efficient.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com