Modeling Industrial Dynamics with Innovative Entrants
Authors: Winter SG, Kaniovski YM, Dosi G
Publication Year: 1998
Reference: IIASA Interim Report IR-98-022
Abstract
The paper analyzes some generic features of industrial dynamics whereby innovative change is carried, stochastically, by new entrants. Relying on the formal representation suggested in Winter et al. (1997), it studies both the asymptotic properties of such processes and their finite dynamics to account for a few empirical stylized facts, including persistent entry and exit, skewed size distributions and turbulence in market shares.