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The paper explores the idea that properties at the level of firms coevolve with more aggregate properties at the level of market institutions in the dynamics of industries. We propose that the structure of network of vertical relations limits the effect of increasing returns at the firm level....

A careful case study of the entire history of the turboprop engine industry (1948-1997) is offered as an example of non shakeout pattern. The persistence of high concentration is not associated to the exit of smaller manufacturers, but instead a stable coexistence of generalist and specialist...