Daunfeldt S.-O.,The Ratio Institute RATIO |
Daunfeldt S.-O.,Dalarna University |
Orth M.,Gothenburg University |
Rudholm N.,Dalarna University |
Rudholm N.,The Swedish Retail Institute HUI
Journal of Industry, Competition and Trade | Year: 2010
A real-options approach was used, incorporating uncertainty and irreversibility of investments, to study the number of stores entering the Swedish retail food market during the period 1994-2002. It was found that uncertainty affected the entry-decision. Entry was less frequent in highly concentrated local retail food-markets characterized by a high degree of uncertainty, whereas higher profit opportunities seem to have increased the probability of entry. © 2010 Springer Science+Business Media, LLC.