American Economic Review Vol. 102 No. 2 2012

Information and Industry Dynamics

Emin M. Dinlersoz¹; Mehmet Yorukoglu²

¹ Center for Economic Studies, US Census Bureau, 4600 Silver Hill Road, Washington, DC 20233. · ² Central Bank of the Republic of Turkey, Istiklal Cad. 10, Ulus, 06100 Ankara, Turkey.

Abstract

This paper develops a model of industry dynamics where firms compete to acquire customers over time by disseminating information about themselves in the presence of random shocks to their efficiency. The properties of the model's stationary equilibrium are related to empirical regularities on firm and industry dynamics. As an application of the model, the effects of a decline in the cost of information dissemination on firm and industry dynamics are explored.

DOI

10.1257/aer.102.2.884

Volume

102

Issue

2

Pages

884-913

Language

en

Sources

openalex bibtex:phds-export.bib crossref

Cite

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