Entry, barriers, exit, and sunk costs: An analysis

David I. Rosenbaum, Fabian Lamort

Research output: Contribution to journalArticle

65 Scopus citations

Abstract

The relationships between entry rates, exit rates, entry barriers and sunk costs are examined across a set of four-digit industry data. Results indicate that product differentiation barriers reduce entry rates and sunk capital costs reduce exit rates. Whether entry and exit are truly simultaneous, however, is not clear.

Original languageEnglish (US)
Pages (from-to)297-304
Number of pages8
JournalApplied Economics
Volume24
Issue number3
DOIs
StatePublished - Mar 1992

ASJC Scopus subject areas

  • Economics and Econometrics

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