Overview

hit-and-run entry


Related Overviews

 

'hit-and-run entry' can also refer to...

 

More Like This

Show all results sharing this subject:

  • Economics

GO

Show Summary Details

Quick Reference

Entry to a market in the expectation of making an immediate profit, possibly followed by withdrawal. This can occur only if the entrant does not incur sunk costs. If there are sunk costs entry will be profitable only if the entrant expects to stay in the market long enough to recoup them. Absence of sunk costs is probable only through economies of scope: firms with skills or facilities which can be put to a variety of uses can afford hit-and-run entry to a particular market.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.