Abstract

http://ssrn.com/abstract=1510480
 
 

References (26)



 
 

Citations (4)



 


 



Endogenous Market Structure and Foreign Market Entry


James R. Markusen


University of Colorado at Boulder - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Frank Stähler


University of Tuebingen - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); University of Adelaide - School of Economics

November 2009

NBER Working Paper No. w15530

Abstract:     
Models dealing with cross-border acquisitions versus greenfield investment usually assume that the entry of a foreign firm into a market has effects on the outputs of all domestic firms in that market, but exit or entry of local firms is not considered. The purpose of this paper is to re-examine the acquisition versus greenfield versus exporting question under fixed versus free entry assumptions for local firms. Our finding is that greenfield entry and exporting options are more attractive relative to acquisition when the local market structure adjusts to foreign entry through local entry or exit than when it is fixed. The entering foreign firm may do better or worse under free entry versus a fixed market structure depending on its optimal choice under the latter assumption.

Number of Pages in PDF File: 29

working papers series


Download This Paper

Date posted: November 24, 2009  

Suggested Citation

Markusen, James R. and Stähler, Frank, Endogenous Market Structure and Foreign Market Entry (November 2009). NBER Working Paper No. w15530. Available at SSRN: http://ssrn.com/abstract=1510480

Contact Information

James R. Markusen (Contact Author)
University of Colorado at Boulder - Department of Economics ( email )
Campus Box 256
Boulder, CO 80309
United States
303-492-0748 (Phone)
303-492-8960 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Frank Stähler
University of Tuebingen - Department of Economics ( email )
Mohlstrasse 36
D-72074 Tuebingen, 72074
Germany
HOME PAGE: http://www.frank-staehler.de
CESifo (Center for Economic Studies and Ifo Institute) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany
University of Adelaide - School of Economics ( email )
Adelaide SA, 5005
Australia
Feedback to SSRN


Paper statistics
Abstract Views: 239
Downloads: 9
References:  26
Citations:  4

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.375 seconds