Access

You are not currently logged in.

Access JSTOR through your library or other institution:

login

Log in through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Selection and the Evolution of Industry

Boyan Jovanovic
Econometrica
Vol. 50, No. 3 (May, 1982), pp. 649-670
Published by: The Econometric Society
DOI: 10.2307/1912606
Stable URL: http://www.jstor.org/stable/1912606
Page Count: 22
  • Read Online (Free)
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Selection and the Evolution of Industry
Preview not available

Abstract

Recent evidence shows that within an industry, smaller firms grow faster and are more likely to fail than large firms. This paper provides a theory of selection with incomplete information that is consistent with these and other findings. Firms learn about their efficiency as they operate in the industry. The efficient grow and survive; the inefficient decline and fail. A perfect foresight equilibrium is proved by means of showing that it is a unique maximum to discounted net surplus. The maximization problem is not standard, and some mathematical results might be of independent interest.

Page Thumbnails

  • Thumbnail: Page 
649
    649
  • Thumbnail: Page 
650
    650
  • Thumbnail: Page 
651
    651
  • Thumbnail: Page 
652
    652
  • Thumbnail: Page 
653
    653
  • Thumbnail: Page 
654
    654
  • Thumbnail: Page 
655
    655
  • Thumbnail: Page 
656
    656
  • Thumbnail: Page 
657
    657
  • Thumbnail: Page 
658
    658
  • Thumbnail: Page 
659
    659
  • Thumbnail: Page 
660
    660
  • Thumbnail: Page 
661
    661
  • Thumbnail: Page 
662
    662
  • Thumbnail: Page 
663
    663
  • Thumbnail: Page 
664
    664
  • Thumbnail: Page 
665
    665
  • Thumbnail: Page 
666
    666
  • Thumbnail: Page 
667
    667
  • Thumbnail: Page 
668
    668
  • Thumbnail: Page 
669
    669
  • Thumbnail: Page 
670
    670