SUNK COSTS, PROFIT VARIABILITY, AND TURNOVER

SUNK COSTS, PROFIT VARIABILITY, AND TURNOVER

Dynamic competitive models of industry evolution suggest that firm profit will be more volatile, and turnover lower, in industries with higher sunk costs. These implications are consistent with empirical observation. (JEL L00)

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Bibliographische Detailangaben
Veröffentlicht in:Economic inquiry 2006-04, Vol.44 (2), p.367-373
Hauptverfasser: GSCHWANDTNER, ADELINA, LAMBSON, VAL E.
Format: Artikel
Sprache:eng
Schlagworte:
Accumulated depreciation
Capital costs
Competition
Costs
Demand
Economic models
Empirical research
Financial services industry
Forecasts and trends
Information management
Net income
Organizational behavior
Productivity
Profit
Profitability
Profits
Proxies
Statistics
Studies
Turnover
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Beschreibung
Zusammenfassung:Dynamic competitive models of industry evolution suggest that firm profit will be more volatile, and turnover lower, in industries with higher sunk costs. These implications are consistent with empirical observation. (JEL L00)
ISSN:0095-2583
1465-7295
DOI:10.1093/ei/cbj021