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Industry Dynamics (industry + dynamics)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Learning-by-Doing, Organizational Forgetting, and Industry Dynamics

ECONOMETRICA, Issue 2 2010
David Besanko
Learning-by-doing and organizational forgetting are empirically important in a variety of industrial settings. This paper provides a general model of dynamic competition that accounts for these fundamentals and shows how they shape industry structure and dynamics. We show that forgetting does not simply negate learning. Rather, they are distinct economic forces that interact in subtle ways to produce a great variety of pricing behaviors and industry dynamics. In particular, a model with learning and forgetting can give rise to aggressive pricing behavior, varying degrees of long-run industry concentration ranging from moderate leadership to absolute dominance, and multiple equilibria. [source]

Industry dynamics with stochastic demand

THE RAND JOURNAL OF ECONOMICS, Issue 1 2008
James Bergin
We study the dynamics of an industry subject to aggregate demand shocks where the productivity of a firm's technology evolves stochastically over time. To characterize the intertemporal evolution of the distribution of firms, we discuss in particular how exit decisions, aggregate output, profits, and distributions of firm productivities vary (a) across different demand realization paths; (b) along a demand history path, detailing the effects of continued good or bad market conditions; and (c) for different anticipated future market conditions. We show how poor demand conditions can lead to increased exit of low-productivity firms at all future dates and states and raise welfare due to the impact on exit decisions. [source]

Learning-by-Doing, Organizational Forgetting, and Industry Dynamics

ECONOMETRICA, Issue 2 2010
David Besanko
Learning-by-doing and organizational forgetting are empirically important in a variety of industrial settings. This paper provides a general model of dynamic competition that accounts for these fundamentals and shows how they shape industry structure and dynamics. We show that forgetting does not simply negate learning. Rather, they are distinct economic forces that interact in subtle ways to produce a great variety of pricing behaviors and industry dynamics. In particular, a model with learning and forgetting can give rise to aggressive pricing behavior, varying degrees of long-run industry concentration ranging from moderate leadership to absolute dominance, and multiple equilibria. [source]

A Study of Industry Evolution in the Face of Major Environmental Disturbances: Group and Firm Strategic Behaviour of Spanish Banks, 1983,1997,

BRITISH JOURNAL OF MANAGEMENT, Issue 3 2004
JoséÁngel Zúñiga-Vicente
This paper examines the story of the evolution of a specific industry through the application of dynamic strategic group analysis. In particular, we analyse the relationship between major environmental disturbances and changes that have occurred over time in the competitive structure of the industry regarding two closely related central questions. First, the way in which these environmental transformations have influenced group patterns and stability, and second, the way in which such environmental disturbances has affected the strategic positioning of individual firms. We resort to alternative theoretical perspectives in an attempt to answer both questions. The empirical setting is the population of Spanish banks over the period 1983,1997. We make use of a new grouping algorithm , the Model-based Clustering or MCLUST , which may be enormously fruitful in future empirical works on strategic groups. This method allows researchers to obtain the optimal number of groupings over time in a much more objective way than the cluster techniques used until now. Compared to previous dynamic studies that only consider the largest firms, our research illustrates how a richer analysis of an industry dynamics can be obtained by using a dynamic analysis of strategic groups. Our results show that while there have been no industry-wide identical groupings year to year, there is an important strategic stability at group and firm-level punctuated by a high degree of strategic instability at times of major environmental disturbances. [source]