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Information Acquisition and Entry

Hurkens, Sjaak and Vulkan, Nir (2001) Information Acquisition and Entry. Journal of Economic Behavior and Organization, 44 (4). pp. 467-479.


This paper provides a framework for explicitly modeling the information gathering activities of potential entrants and analyzes how entry behavior is affected by these activities. We assume that information is acquired secretly and that firms face uncertainty about more than one variable. When costs of information gathering are small, entry decisions are as if firms had perfect information so that lack of information cannot cause too much nor too little entry. This as if behavior is even exhibited in specialization equilibria in which different firms obtain information about few but distinct variables. Such equilibria are both socially desirable and robust.

Item Type: Article
Keywords: Secret information acquisition; Entry; finance
Subject(s): Complexity
Centre: CABDyN Complexity Centre
Entrepreneurship Centre
Date Deposited: 20 Feb 2012 14:53
Last Modified: 18 Sep 2018 13:14
Funders: N/A

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