Previous work on exit in declining industries has neglected mergers. We examine a simple model that predicts which declining industries experience horizontal mergers. Mergers are more likely if 1) market concentration is high; 2) the inverse demand curve is steep at high levels of output and...

We introduce a racing model with multiple product generations, product innovation, spin-outs, and licensing. Industry conditions and innovation characteristics affect who wins the race and who markets the resulting product. Small firms market their innovations when they pioneer a new generation...

This paper investigates the effects of employee mobility on industry evolution and technology diffusion by testing a dynamic industry equilibrium model introduced in Franco and Filson (1999). The model focuses on a particular type of employee mobility: researchers can leave existing firms and...

Filson (2001) uses industry-level data on firm numbers, price, quantity, and quality along with an equilibrium model of industry evolution to estimate the nature and effects of quality and cost improvement in the personal computer industry and four other new industries. This paper studies the...

This paper estimates the nature and effects of quality and cost innovations in the early automobile, personal computer, rigid disk drive, computer monitor, and computer printer industries using industry-level data on firm numbers, price, quantity, and quality along with an equilibrium model of...