The full text of this article
Profiling of sunk cost industries by soft clustering techniques: Turkey case
by M. Akif Arvas; Ahmet Selman Bozkır
International Journal of Industrial and Systems Engineering (IJISE), Vol. 15, No. 3, 2013
Abstract: The aim of this study is to determine the convenience of Sutton's game-theoretic sunk cost theory by profiling Turkish manufacturing industries via fuzzy c-means (FCM) and expectation-maximisation (EM) clustering methods. The effects of sunk costs on market structure are analysed separately for exogenous and endogenous sunk cost industries in Turkish manufacturing sectors in the period 1992-2001. The results suggest that as market size increases, so does the level of advertising and R&D outlays leading to a concentrated market structure in endogenous sunk cost industries. On the other hand, in exogenous sunk cost industries, market structure becomes more competitive and number of new entrant firms rise as market size growths. According to the profiles constituted by FCM and EM methods, these findings are consistent with Sutton's predictions. Furthermore, the most important factors which discriminates the clusters are revealed by FCM method.
Online publication date: Thu, 29-Aug-2013
is only available to individual subscribers or to users at subscribing institutions.
Go to Inderscience Online Journals to access the Full Text of this article.
Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.
Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Industrial and Systems Engineering (IJISE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable).
See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org