The paper studies empirically and analytically growth and fluctuation of firm size distribution. An empirical analysis is carried out on several data sets on firm size, with emphasis on one-time distribution as well as growth-rate probability distribution. Two well-known scaling laws, Pareto's...

I present a model of industry dynamics resulting from competition between forward looking, heterogeneous firms that face three simultaneous challenges: learning in the process of production, competing against new entrants able to imitate best practice (albeit imperfectly), and enduring...

We investigate a simple nonlinear model of economics to which strong multiplicative noise is added, and find two distinct generic control regimes. In the regime of noisy behavior, the application of the control is able to reduce noise only if the underlying periodicity is correctly taken into...

The purpose of this paper is to investigate the evolutionary process of imitation and innovation as a process of searching in a given neighbourhood of firms. Networks are the main source of information for firms willing to actively search and upgrade and which define the reachable neighbourhood...

The formation of complex patterns in physical or biological systems is often caused by the interaction of many low (Kolmogorov) complexity systems, leading to emergent collective effects. In this contribution, we demonstrate how complex processing of acoustic signals by the peripheral auditory...

We analyze a fully dynamic model of price competition when firms face a learning curve and the possibility of organizational forgetting. We show that even though the leader firm may underprice the follower and this price difference may grow as the leader's cost advantage widens, the market may...

Recent empirical findings have emphasized post entry growth of survivors, as opposed to exit of inefficient and small firms, as the main source of growth over time in the average size of a cohort of entering firms. In this paper, as an explanation for the significant growth of survivors, we...

The paper studies whether “idiosyncratic riskâ€, i.e. the degree to which firm and industry specific returns are more volatile than aggregate market returns, is higher in innovative industries which are characterized by more risk and uncertainty. Volatility is studied both at the...

The paper investigates how the interplay between business cycles and long-run growth shapes the dynamics of economies characterized by financial market imperfections. Most of standard economic literature has centered the analysis of decentralized economies on the representative agent hypothesis...