TY - JOUR
T1 - Two technological revolutions
AU - Jovanovic, Boyan
AU - Rousseau, Peter L.
PY - 2003
Y1 - 2003
N2 - The IPOs of the Electricity/Internal Combustion revolution created more lasting value than the IPOs of the IT revolution. Stock-market data point to two explanations for this. First, computer prices have been falling much faster than did those of electricity and internal combustion in the 1890-1930 period, and so the value of each generation of computerintensive entrants is reduced by later entrants. And, second, the pre-1973 vintages reacted to the microcomputer relatively quickly, perhaps because the threat of being taken over is now higher than it was 70-100 years ago.
AB - The IPOs of the Electricity/Internal Combustion revolution created more lasting value than the IPOs of the IT revolution. Stock-market data point to two explanations for this. First, computer prices have been falling much faster than did those of electricity and internal combustion in the 1890-1930 period, and so the value of each generation of computerintensive entrants is reduced by later entrants. And, second, the pre-1973 vintages reacted to the microcomputer relatively quickly, perhaps because the threat of being taken over is now higher than it was 70-100 years ago.
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U2 - 10.1162/154247603322391053
DO - 10.1162/154247603322391053
M3 - Article
AN - SCOPUS:13444302012
SN - 1542-4766
VL - 1
SP - 419
EP - 428
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 2-3
ER -