Entry Order, Performance, and Geography: the Case of the Convenience‐store Industry in Japan
Year: 2024
Type: article
Abstract: Entry‐order effects on economic profits have not been extensively studied due to data limitations. This article empirically examines these effects on revenues and costs using a structural approach without requiring information on accounting profits and costs. Utilizing panel data from Japan's convenience‐store industry, I apply a two‐step estimator for many geographic markets. The results reveal that whereas early entrants gain 4.8% more revenue at the outlet level, subsequent entrants benefit from a 7.6% and 5.8% reduction in variable and expansion costs. Simulations suggest initial benefits from delayed entry, but these may dissipate over time, particularly in rapidly growing markets.
Source: International Economic Review
DOI: 10.1111/iere.12742
Author: Mitsukuni Nishida
Institution: Johns Hopkins University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4404044561