Firm entry and exit decisions are central to theories of market organization and the firm, and to the efficiency of a competitive market environment. Timely exit by “inefficient” firms is essential for the reallocation of economic resources from lower-value to higher-value users. If firm...

Firm entry and exit decisions are central to theories of market organization and the firm, and to the efficiency of a competitive market environment. Timely exit by “inefficient” firms is essential for the reallocation of economic resources from lower-value to higher-value users. If firm...