Turbulence in high growth and declining industries

Arbeitspapier

We examine turbulence over the product life cycle using the lowest possible level of industry aggregation, allowing for the use of panel data to study the evolution of single product markets. We find that replacement of exiting firms by subsequent entry plays a primary role in generating turbulence in high growth markets, while displacement of incumbents by recent entrants is the main selection force in declining markets. As product life cycles progress, trial-and-error entry subsides, and turbulence decreases.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Jena Economic Research Papers ; No. 2007,043

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Subject: Entry ; Exit ; Selection ; Product life cycle ; Replacement ; Displacement ; Marktstruktur ; Wettbewerb ; Produktlebenszyklus ; Markteintritt ; Marktaustritt ; Wachstumsbranche ; Schrumpfungsbranche ; Portugal

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Baptista, Rui ; Karaöz, Murat
• Event: Veröffentlichung
• (who): Friedrich Schiller University Jena and Max Planck Institute of Economics
• (where): Jena
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/25612
• Last update: 10.03.2025, 11:44 AM CET