Abstract
The entrepreneurship has positive and significant connection with economic growth. Competition would be increased by new entrants in the market; then, social welfare would be improved. Thus, positive entrepreneurship policies are often linked to increased social welfare by authorities. In this paper, we focus on a certain case where potential entrepreneurs are employees of existing firms to test the above ideas. The purpose of our research is to assess the variation of social welfare in the context of employer-restricted separation. Therefore, the model of Cournot competition where employees constitute the only entry threat was used in this paper. The results demonstrate that social welfare would not always be improved even in a good entrepreneurial context. If the deterring strategy is present, the relationship between positive entrepreneurship policies and increased social welfare might not hold, or would depend on the different strategies adopted by the incumbent. Therefore, the sustainability of a positive entrepreneurship policy would be impaired by incumbent firms.
References
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- Could the Stock Market Adjust Itself? An Empirical Study Based on Mean Reversion Theory
- Research on the Satisfaction Impact Factors of China-Eurasia Expo: From the Perspectives of Local Residents and Exhibitors
- Study on the Measurement of Industrial Structure “Sophistication, Rationalization and Ecologicalization” Based on the Dynamic Analysis of Grey Relations — A Case Study of Beijing-Tianjin-Hebei
- Can Positive Entrepreneurship Policies Always Improve Social Welfare?
- PMCMC for Term Structure of Interest Rates under Markov Regime Switching and Jumps
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- Single Image Dehazing with V-transform and Dark Channel Prior