Elisabet Berglund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
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.
13 pages, April 21, 1999
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