Brown, J. David (contributor); Earle, John S. (contributor) - 2008
and receive an initial productivity draw from G(φ).
4
Incumbents may choose to exit, paying C
x
, which includes … costs on reallocation and productivity differentials. Increases in C
e
and
C
x
tend to reduce entry, exit, φ
*
, and the …, it decreases the contribution of entry. Lower C
x
(higher fixed cost of operating)
raises φ
*
and the relative …