Abstract
The theory of the firm is a central part of (neo)classical microeconomic analysis. In models of competitive markets, contestable markets and monopolistic competition, entries of new enterprises and exits of old enterprises change market structure and performance and are an important factor in reaching the long-term equilibrium in an industry. “Turnover processes are ubiquitous among plants and firms classified to an industry. They are also stable, explicable, and can be embraced within the traditional thinking based on market-equilibrium models that underlies the bulk of empirical research in industrial organisation.” (Caves 1998, p. 1975).
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Hampe, J., Steininger, M. (2002). Survival, Growth, and Interfirm Collaboration of Start-Up Companies in High Technology Industries: A Case Study of Upper Bavaria. In: Schätzl, L., Diez, J.R. (eds) Technological Change and Regional Development in Europe. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57467-2_7
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DOI: https://doi.org/10.1007/978-3-642-57467-2_7
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