Location of Repository

Options, Timing, and Regional Entry of Firms

By Elisabet Berglund

Abstract

This paper studies how the possibility to postpone the unrecoverable entry and location cost affects regional entry when post-entry earnings are uncertain. We find that the opportunity cost to enter today is higher when entering a region with high uncertainty relative to a region with low uncertainty.Timing; Regional uncertainty; Brownian motion

OAI identifier:

Suggested articles

Preview


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.