L61 - Metals and Metal Products; Cement; Glass; Ceramics

• Building New Plants or Entering by Acquisition? Estimation of an Entry Model for the U.S. Cement Industry

  Staff Working Paper 2011-1 Héctor Pérez Saiz

  In many industries, firms usually have two choices when expanding into new markets: They can either build a new plant (greenfield entry) or they can acquire an existing incumbent. In the U.S. cement industry, the comparative advantage (e.g., TFP or size) of entrants versus incumbents and regulatory entry barriers are important factors that determine the means of expansion.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Econometric and statistical methods, Market structure and pricing, Productivity JEL Code(s): L, L1, L13, L4, L40, L6, L61