Sentence examples for entry of firms from inspiring English sources

However, all of these articles assume horizontal differentiation à la Hotelling with no entry of firms along the linear city.

Since free entry of firms ensures that Π V i = 0, (3) gives: Π E i − Π V i = y − ω F i r + q. (6).

Or, to put it differently, for given F firm 1 needs to overinvest more to deter entry of firm 2. Therefore, it starts doing this for larger values of F and needs to keep on doing it for larger values of F than in the Markov perfect equilibrium.

At the end of the period prior to the entry of firm 2, firm 1 has the following concave salvage function, which equals the value function of the duopolistic period at that time (for a derivation we refer to Appendix B): S (K 1 ) = Y 1 + Y 2 K 1 + Y 3 K 1 2 where Y1 > 0, Y2 > 0 and Y3 < 0 (for the full expressions of these parameters we again refer to Appendix B).

Using an analytically tractable model with entry and exit, we show that reducing entry cost will increase average firm productivity by encouraging more entries of firms, whereas reducing overhead cost will decrease it by adversely lowering the selection standard.

Procurement design, such as contract size, and public governance are also found important determinants of the entry strategy of firms.

As he writes, "As an industry becomes more ordinary capital-intensive, there is less entry of small firms and fewer establishment openings by large firms".

They argued that it suggested that potential technology transfer between foreign firms and their local competitors is more than offset by the competition induced by the entry of foreign firms and the existence and strength of horizontal and vertical spillovers depended on industry and firm characteristics and on the types of FDI.

However, at an economy-wide level, this is not necessarily because product regulation and employment protection discourage the entry of new firms.

A second criticism is that advertising restricts competition because only large companies can afford expensive, nationwide campaigns, thus limiting freedom of entry of new firms into an established market.

In more mature industries, productivity growth within existing companies, or the exit of old ones, counts for more.How might the entry of new firms be influenced by labour- and product-market regulations?