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http://hdl.handle.net/10419/27549
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| Title: | | Barriers to Entry and Profitability  |
| Authors: | | Heger, Diana Kraft, Kornelius |
| Issue Date: | | 2008 |
| Series/Report no.: | | ZEW Discussion Papers 08-071 |
| Abstract: | | Barriers to entry are regarded as major impediments to the working of markets. Entry must not necessarily actually take place - the perceived threat of entry may encourage incumbent firms to behave as if they are in a competitive market, even if they are not. We present empirical evidence on effects of perceived threat of entry on profitability. Using information from managers about how they assess the existence of entry barriers a strong impact of these assessments on profitability is confirmed. The number and the relative size of competitors also exert considerable effects. We find no statistically significant relation between the perceived threat of entry and the actual number of firms if the size of the relevant market is taken into account. |
| Subjects: | | Barriers to Entry Profitability Discrete Regression Models |
| JEL: | | C25 L25 L13 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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