The life cycle of a competitive industry

Boyan Jovanovic, G. M. Macdonald

    Research output: Contribution to journalArticle

    Abstract

    Firm numbers first rise, then later fall, as an industry evolves. This nonmonotonicity is explained using a competitive model in which innovation opportunities fuel entry and relative failure to innovate prompts exit; equilibrium time paths for price and quantity also share features of the data. The model is estimated using data from the US automobile tire industry, a particularly dramatic example of the nonmonotonicity in firm numbers. -Authors

    Original languageEnglish (US)
    Pages (from-to)322-347
    Number of pages26
    JournalJournal of Political Economy
    Volume102
    Issue number2
    StatePublished - 1994

    Fingerprint

    Industry
    Life cycle
    Innovation
    Tire
    Exit
    Competitive model
    Automobile

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Jovanovic, B., & Macdonald, G. M. (1994). The life cycle of a competitive industry. Journal of Political Economy, 102(2), 322-347.

    The life cycle of a competitive industry. / Jovanovic, Boyan; Macdonald, G. M.

    In: Journal of Political Economy, Vol. 102, No. 2, 1994, p. 322-347.

    Research output: Contribution to journalArticle

    Jovanovic, B & Macdonald, GM 1994, 'The life cycle of a competitive industry', Journal of Political Economy, vol. 102, no. 2, pp. 322-347.
    Jovanovic B, Macdonald GM. The life cycle of a competitive industry. Journal of Political Economy. 1994;102(2):322-347.
    Jovanovic, Boyan ; Macdonald, G. M. / The life cycle of a competitive industry. In: Journal of Political Economy. 1994 ; Vol. 102, No. 2. pp. 322-347.
    @article{d8c8f52378cc4b9981a84bd289b8f223,
    title = "The life cycle of a competitive industry",
    abstract = "Firm numbers first rise, then later fall, as an industry evolves. This nonmonotonicity is explained using a competitive model in which innovation opportunities fuel entry and relative failure to innovate prompts exit; equilibrium time paths for price and quantity also share features of the data. The model is estimated using data from the US automobile tire industry, a particularly dramatic example of the nonmonotonicity in firm numbers. -Authors",
    author = "Boyan Jovanovic and Macdonald, {G. M.}",
    year = "1994",
    language = "English (US)",
    volume = "102",
    pages = "322--347",
    journal = "Journal of Political Economy",
    issn = "0022-3808",
    publisher = "University of Chicago",
    number = "2",

    }

    TY - JOUR

    T1 - The life cycle of a competitive industry

    AU - Jovanovic, Boyan

    AU - Macdonald, G. M.

    PY - 1994

    Y1 - 1994

    N2 - Firm numbers first rise, then later fall, as an industry evolves. This nonmonotonicity is explained using a competitive model in which innovation opportunities fuel entry and relative failure to innovate prompts exit; equilibrium time paths for price and quantity also share features of the data. The model is estimated using data from the US automobile tire industry, a particularly dramatic example of the nonmonotonicity in firm numbers. -Authors

    AB - Firm numbers first rise, then later fall, as an industry evolves. This nonmonotonicity is explained using a competitive model in which innovation opportunities fuel entry and relative failure to innovate prompts exit; equilibrium time paths for price and quantity also share features of the data. The model is estimated using data from the US automobile tire industry, a particularly dramatic example of the nonmonotonicity in firm numbers. -Authors

    UR - http://www.scopus.com/inward/record.url?scp=0028580309&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=0028580309&partnerID=8YFLogxK

    M3 - Article

    VL - 102

    SP - 322

    EP - 347

    JO - Journal of Political Economy

    JF - Journal of Political Economy

    SN - 0022-3808

    IS - 2

    ER -