HUI Working Papers, HUI Research
Entry into Local Retail Food Markets in Sweden: A Real-Options Approach
(), Matilda Orth
() and Niklas Rudholm
Abstract: 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.
Keywords: Real options; uncertainty; retail food; entry; negative binomial regression; (follow links to similar papers)
JEL-Codes: L13; L81; (follow links to similar papers)
27 pages, February 22, 2007
- This paper is published as:
Daunfeldt, Sven-Olov, Matilda Orth and Niklas Rudholm, (2010), 'Entry into Local Retail Food Markets in Sweden: A Real-Options Approach', Journal of Industry, Competition and Trade, Vol. 10, No. 3, pages 15
Questions (including download problems) about the papers in this series should be directed to Helena Nilsson ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom