Entry, exit, and the determinants of market structure
Publication
, Journal Article
Dunne, T; Klimek, SD; Roberts, MJ; Xu, DY
Published in: RAND Journal of Economics
September 1, 2013
This article estimates a dynamic, structural model of entry and exit for two US service industries: dentists and chiropractors. Entry costs faced by potential entrants, fixed costs faced by incumbent producers, and the toughness of short-run price competition are important determinants of long-run firm values, firm turnover, and market structure. In the dentist industry entry costs were subsidized in geographic markets designated as Health Professional Shortage Areas (HPSA) and the estimated mean entry cost is 11 percent lower in these markets. Using simulations, we find that entry cost subsidies are less expensive per additional firm than fixed cost subsidies. © 2013, RAND.
Duke Scholars
Altmetric Attention Stats
Dimensions Citation Stats
Published In
RAND Journal of Economics
DOI
EISSN
1756-2171
ISSN
0741-6261
Publication Date
September 1, 2013
Volume
44
Issue
3
Start / End Page
462 / 487
Related Subject Headings
- Economics
- 3803 Economic theory
- 3802 Econometrics
- 3801 Applied economics
- 14 Economics
Citation
APA
Chicago
ICMJE
MLA
NLM
Dunne, T., Klimek, S. D., Roberts, M. J., & Xu, D. Y. (2013). Entry, exit, and the determinants of market structure. RAND Journal of Economics, 44(3), 462–487. https://doi.org/10.1111/1756-2171.12027
Dunne, T., S. D. Klimek, M. J. Roberts, and D. Y. Xu. “Entry, exit, and the determinants of market structure.” RAND Journal of Economics 44, no. 3 (September 1, 2013): 462–87. https://doi.org/10.1111/1756-2171.12027.
Dunne T, Klimek SD, Roberts MJ, Xu DY. Entry, exit, and the determinants of market structure. RAND Journal of Economics. 2013 Sep 1;44(3):462–87.
Dunne, T., et al. “Entry, exit, and the determinants of market structure.” RAND Journal of Economics, vol. 44, no. 3, Sept. 2013, pp. 462–87. Scopus, doi:10.1111/1756-2171.12027.
Dunne T, Klimek SD, Roberts MJ, Xu DY. Entry, exit, and the determinants of market structure. RAND Journal of Economics. 2013 Sep 1;44(3):462–487.
Published In
RAND Journal of Economics
DOI
EISSN
1756-2171
ISSN
0741-6261
Publication Date
September 1, 2013
Volume
44
Issue
3
Start / End Page
462 / 487
Related Subject Headings
- Economics
- 3803 Economic theory
- 3802 Econometrics
- 3801 Applied economics
- 14 Economics