Entry Regulation and Persistence of Profits in Incumbent Firms

Sameeksha Desai, Johan Erik Eklund, Emma Lappi*

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelpeer review


In line with the theory of creative destruction, industries where incumbent firms generate high profits will attract entry, which should drive down profits. This disciplinary effect of entry implies that profits above the norm should not exist in the long run. Factors that affect entry—such as entry regulations—could affect this profits convergence process. Using an unbalanced panel of firm- and country-level data for approximately 13,000 firms in 33 countries between 2005 and 2013, we examine the profit dynamics of incumbent firms in the context of entry and entry regulations.
TidsskriftReview of Industrial Organization
Udgave nummer3
Sider (fra-til)537-558
Antal sider22
StatusUdgivet - nov. 2020
Udgivet eksterntJa


  • Entry
  • Entrepreneurship
  • Entry regulation
  • Profit
  • Incumbent firm
  • Creative destruction