Abstract
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.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 63-72 |
| Number of pages | 10 |
| Journal | Review of Economic Studies |
| Volume | 54 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 1987 |
ASJC Scopus subject areas
- Economics and Econometrics