IDEAS home Printed from https://ideas.repec.org/p/ecl/stabus/2110.html
   My bibliography  Save this paper

Toward an Ecology of Market Categories

Author

Listed:
  • Pontikes, Elizabeth G.

    (University of Chicago)

  • Hannan, Michael T.

    (Stanford University)

Abstract

This paper proposes that social categorization is driven by an ecological dynamic that operates in two planes: feature space and category space. It develops a theoretical model that links positions in feature space to label assignments in category space. The first part of the model predicts that movements in feature space affect label assignments in category space, with proximity to labeled clusters affecting label adoption. The second part predicts that the structure of category space affects this relationship. For lenient labels, positions in feature space are more weakly related to label adoption in category space. An empirical analysis of software producers, based on their positions in a feature space of patents, and a category space of market-label affiliations, supports these predictions. The results imply that social classification is characterized by this coupled ecological dynamic. Further, our findings have implications for the evolution of categories, suggesting that lenient categories will become more lenient, while constraining categories will become more constraining.

Suggested Citation

  • Pontikes, Elizabeth G. & Hannan, Michael T., 2012. "Toward an Ecology of Market Categories," Research Papers 2110, Stanford University, Graduate School of Business.
  • Handle: RePEc:ecl:stabus:2110
    as

    Download full text from publisher

    File URL: https://gsbapps.stanford.edu/researchpapers/library/RP2110.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    2. Iain M. Cockburn & Megan J. MacGarvie, 2009. "Patents, Thickets and the Financing of Early-Stage Firms: Evidence from the Software Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 729-773, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecl:stabus:2110. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/gsstaus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.