Demand-Driven Innovation and Spatial Competition Over Time
This paper explores a model of innovation and spatial competition over time. A key implication of the paper is that firms' size is positively autocorrelated across time. The mechanism that generates this persistence works only in heterogenous-product markets and is based on the idea that larger firms possess better information about the design of future products. Some corroborating evidence is cited.
(This abstract was borrowed from another version of this item.)
|Date of creation:||1985|
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