Private insurance firms participating in Medicare can offer up to three principal plan types: coordinated care plans (CCPs), prescription drug plans (PDPs), and private fee-for-service (PFFS) plans. Firms can make entry and marketing decisions separately across plan types and geographic regions. In this study, we estimate firm-level models of Medicare private plan entry using data from the year...

internationalization and tendency of small and medium enterprises to move into international markets are important and one of the essential factors of economic growth and development in the developing countries. several factors affect the process of internationalization of firms has been studied. the main goal of this study is examination relations between business strategies and internationali...

Abstract We provide a new rationale for socially insufficient market entry. show that if the shadow cost of public funds is sufficiently high, number firms under free entry can be tax policies are “time inconsistent”, so governments cannot commit to before firms. Hence, strategic may reason why policymakers should engage in pro-competitive policies. Lump-sum subsidies way achieve goal.

Big box retail stores have large impact on local economies and receive large subsidies from local governments. Hence it is important to understand how discount retail chains choose store locations. In this paper, I study the entry decisions of those firms, examine the role of preemptive incentives, and evaluate the impact of government subsidies on those decisions. To quantify preemptive incent...

We study the effects of market structure on entry using data from the UK fast food (counter-service burger) industry over the years 1991-1995. Over this period, the market can be characterized as a duopoly. We find that market structure matters greatly: for both firms, rival presence increases the probability of entry. We control for market specific time-invariant unobservables and their correl...

Why do large firms choose to compete with a cartel rather than to cooperate? Bos and Harrington (2010) explained why small firms do not join in a cartel by introducing heterogeneous firms. But it is still unclear why large firms do not join in a cartel. This paper shows a possibility that only mid-level productive firms benefit from joining a cartel by considering endogenous choices of firm-pro...

This paper presents a simple model of search and matching between consumers and firms. The firm size distribution has a Pareto-like right tail if the population of consumers grows at a positive rate and the mean rate at which incumbent firms gain customers is also positive. This happens in equilibrium when entry is sufficiently costly. As entry costs grow without bound, the size distribution ap...

Using novel and primary data on local SMEs belonging to the Portuguese furniture production cluster, this study examines firms’ strategic responses IKEA’s entry its impact their performance. Local firms seem respond in diverse ways implement different strategies obtain performance gains, leading an upgrade size, resources competences. A differentiation focus strategy is one of most frequently a...

We extend the basic Schumpeterian endogenous growth model by allowing incumbents to undertake innovations to improve their products, while entrants engage in more “radical” innovations to replace incumbents. Our model provides a tractable framework for the analysis of growth driven by both entry of new firms and productivity improvements by continuing firms. The model generates a non-degenerate...

We explore the supply chain problem of a downstream durable goods monopolist, who chooses one following trading modes: an exclusive with incumbent supplier or open chain, allowing monopolist to trade new efficient entrant in future. The expected retail price reduction future dampens profitability original firms. An entrant's entry magnifies such reduction, causing further firms' joint profits. ...