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Revenues as a Proxy for Profits: A Cautionary Note

Author

Listed:
  • Daunfeldt, Sven-Olov

    (The Swedish Retail Institute (HUI))

  • Rudholm, Niklas

    (The Swedish Retail Institute (HUI))

Abstract

In the entry literature, researchers sometimes use revenues as a proxy for profits because this is the only data available. Doing so could seriously bias the results.

Suggested Citation

  • Daunfeldt, Sven-Olov & Rudholm, Niklas, 2006. "Revenues as a Proxy for Profits: A Cautionary Note," HUI Working Papers 5, HUI Research.
    • Handle: RePEc:hhs:huiwps:0005
    as

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    References listed on IDEAS

    as
    1. Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2005. "Entry into Local Retail Food Markets in Sweden: A Real-Options Approach," Working Papers in Economics 170, University of Gothenburg, Department of Economics.
    2. Fiona M. Scott Morton, 1999. "Entry Decisions in the Generic Pharmaceutical Industry," RAND Journal of Economics, The RAND Corporation, vol. 30(3), pages 421-440, Autumn.
    3. Sven-olov Daunfeldt & Niklas Rudholm & Fredrik Bergström, 2006. "Entry into Swedish Retail and Wholesale Trade Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(3), pages 213-225, November.
    4. Fiona M. Scott Morton, 1999. "Entry Decisions in the Generic Pharmaceutical Industry," Yale School of Management Working Papers ysm119, Yale School of Management.
    5. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Iván Moreno-Torres & Jaume Puig-Junoy & Joan-Ramon Borrell, 2009. "Generic Entry into the Regulated Spanish Pharmaceutical Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(4), pages 373-388, June.

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    More about this item

    Keywords

    Entry; wholesale trade; retail trade; negative binomial regression;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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