Technological Change, Entry and Stock Market Dynamics: An Analysis of Transition in a Monopolistic Economy

This paper explores an equilibrium model for industry entry dynamics and technological change. We focus on the share valuation of firms in the transition as technology changes, and whether or not share prices are always increasing when technology improves. We find that there can be a U-shaped transition dynamic, so that an initial boom in share price is followed by a temporary fall in share price even though the underlying technology is improving.

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Year of publication:	2002
Authors:	Datta, Bipasa ; Dixon, Huw D.
Institutions:	CESifo
Subject:	technology \| share-price \| entry \| industry \| dynamic

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Extent:	application/pdf
Series:	CESifo Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 641
Classification:	D40 - Market Structure and Pricing. General ; D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; L10 - Market Structure, Firm Strategy, and Market Performance. General ; O30 - Technological Change; Research and Development. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005181568