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Cited by 655

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An empirical model of firm entry with endogenous product-type choices

Open access
Seim, Katja·2006·The RAND Journal of Economics

Abstract

I describe a model of entry with endogenous product-type choices. These choices are formalized as the outcomes of a game of incomplete information in which rivals' differentiated products have nonuniform competitive effects on profits. I estimate the model for location choices in the video retail industry using a nested fixed-point algorithm solution. The results imply significant returns to product differentiation. Simulations illustrate the tradeoff between demand and intensified competition and the extent to which markets with more scope for differentiation support greater entry.

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Metadata

Authors
Seim, K.
Venue
The RAND Journal of Economics
Publisher
Wiley
Published
2006-09
Volume
37
Issue
3
Pages
619-640
ISSN
  • 0741-6261 (ISSN-L)
  • 1756-2171
OpenAlex
W1975555673
Cited by
655
References
1
FWCI
87.60
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: An empirical model of firm entry with endogenous product-type choices. https://app.cochat.ai/papers/10.1111/j.1756-2171.2006.tb00034.x
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Seim, K. (2006). An empirical model of firm entry with endogenous product-type choices. The RAND Journal of Economics. https://doi.org/10.1111/j.1756-2171.2006.tb00034.x

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.