biases in favor of open firms. First, a closed entrant can capture multiple profits whereas an open entrant faces a lower … offset losses in one component with profits from another and thereby have better survival as compared to open firms, when … prices fall below a threshold level, a closed firm is more likely to exit than a comparable pair of open firms. Finally …

spot prices for twelve products. These time series contain two exogenous cost shocks. We find that prices exhibit more … market has more information on it than the second. We conclude, therefore, that prices are more flexible in response to cost …