The determinants of new firm formation i
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Riccardo Revelli; Silvana Tenga
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Article
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1989
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Springer US
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English
β 855 KB
This paper focuses on entry of small firms in the manufacturing industries. It is argued that the exit option can be viewed as an insurance against risks of failure, increasing the likelihood of entry in an uncertain environment; the result is implicit in recent stochastic models of competition and