caa a22 4500 445859296 CHVBK 20180915131004.0 cr unu---uuuuu 170323e20110601xx s 000 0 eng 10.1007/s10290-010-0085-3 doi (NATIONALLICENCE)springer-10.1007/s10290-010-0085-3 Endogenous market structure and foreign market entry [Elektronische Daten] [James Markusen, Frank Stähler] Models dealing with cross-border acquisitions versus greenfield investment usually assume that the entry of a foreign firm into a market has effects on the outputs of all domestic firms in that market, but exit or entry of local firms is not considered. The purpose of this paper is to re-examine the acquisition versus greenfield versus exporting question under fixed versus free entry assumptions for local firms. Our finding is that greenfield entry and exporting options are more attractive relative to acquisition when the local market structure adjusts to foreign entry through local entry or exit than when it is fixed. With respect to welfare in the host economy, existing theory models and policy discussions maintain that the effects of greenfield versus acquisition entry differ substantially. We show that under free entry and exit, there is no difference between the two for consumer surplus, but acquisition improves welfare a little through rent extraction by the local acquired firm. Thus the existing conventional wisdom may be leading to inappropriate policy choices by host governments. Kiel Institute, 2010 Cross-border acquisitions nationallicence Foreign direct investment nationallicence Multinational firms nationallicence Endogenous market structures nationallicence Markusen James Department of Economics, University of Colorado, 80309-0256, Boulder, CO, USA aut Stähler Frank Department of Economics, University of Würzburg, CESifo, Sanderring 2, 97070, Würzburg, Germany aut Review of World Economics Springer-Verlag 147/2(2011-06-01), 195-215 1610-2878 147:2<195 2011 147 10290 https://doi.org/10.1007/s10290-010-0085-3 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10290-010-0085-3 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Markusen James Department of Economics, University of Colorado, 80309-0256, Boulder, CO, USA aut NATIONALLICENCE 700 1- Stähler Frank Department of Economics, University of Würzburg, CESifo, Sanderring 2, 97070, Würzburg, Germany aut NATIONALLICENCE 773 0- Review of World Economics Springer-Verlag 147/2(2011-06-01), 195-215 1610-2878 147:2<195 2011 147 10290 Metadata rights reserved Springer special CC-BY-NC licence nationallicence SWISSBIB 089469410 BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer