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  3. American Economic Review
  4. April 2012
  5. Information and Industry Dynamics

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Information and Industry Dynamics

  • Emin M. Dinlersoz
  • Mehmet Yorukoglu
American Economic Review
vol. 102, no. 2, April 2012
(pp. 884–913)
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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. (JEL D11, D83, L11, L81, M37)

Citation

Dinlersoz, Emin M., and Mehmet Yorukoglu. 2012. "Information and Industry Dynamics." American Economic Review 102 (2): 884–913. DOI: 10.1257/aer.102.2.884

Additional Materials

JEL Classification

  • D11 Consumer Economics: Theory
  • D83 Search; Learning; Information and Knowledge; Communication; Belief
  • L11 Production, Pricing, and Market Structure; Size Distribution of Firms
  • L81 Retail and Wholesale Trade; e-Commerce
  • M37 Advertising