Informality as a Stepping Stone:Entrepreneurial Entry in a Developing Economy

We model decisions with respect to formality or informality for entrepreneurs in a newindustry for a developing economy. We show that informality allows a leader to explore,without significant sunk costs, the potential profitability of the industry; that is, informality maybe a stepping stone, enabling an entrepreneur to experiment cheaply in an uncertainenvironment...

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Year of publication:	2007-07-01
Authors:	Bennett, John ; Estrin, Saul
Institutions:	Forschungsinstitut zur Zukunft der Arbeit <Bonn>
Subject:	Unternehmen \| Wirtschaftliche Entwicklung \| Schattenwirtschaft \| Aufnahme \| surveys

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Extent:	311296 bytes 45 p. application/pdf
Series:	IZA - Forschungsinstitut zur Zukunft der Arbeit - Discussion Papers IZA Discussion Paper ; No. 2950 (2007)
Type of publication:	Book / Working Paper
Language:	English
Classification:	L10 - Market Structure, Firm Strategy, and Market Performance. General ; O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements ; Strategic management ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005862339