Mamede, Ricardo (2005): Brand effects, mobility costs and industry evolution.
Download (1MB) | Preview
In this paper I present a model that was built in order to analyse the interdependencies between labour market dynamics and the evolution of industries’ structure. Being inspired by the case of consultancy services, the model integrates many of the features typically found in those industries. In particular, problems of incomplete information, the role of ‘brand effects’, and constraints in the supply of specialised labour, are taken into account. This model is able to reproduce many of the empirical regularities that have been identified in studies of industrial dynamics on the basis of causal mechanisms that are absent from most theoretical models, and it shows to be a useful tool in understanding some features of the evolution of real world industries.
|Item Type:||MPRA Paper|
|Institution:||Dinâmia - ISCTE|
|Original Title:||Brand effects, mobility costs and industry evolution|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L15 - Information and Product Quality ; Standardization and Compatibility
L - Industrial Organization > L8 - Industry Studies: Services > L84 - Personal, Professional, and Business Services
|Depositing User:||Ricardo Mamede|
|Date Deposited:||11. Jul 2007|
|Last Modified:||12. Feb 2013 17:11|
Addison, J. and P. Portugal (2002). “Job search methods and outcomes”. Oxford Economic Papers 54(3):505-533. Caves, R. (1998). "Industrial Organization and New Findings on the Turnover and Mobility of Firms." Journal of Economic Literature 36:1947-82. Dosi, G., F. Malerba, O. Marsili, and L. Orsenigo (1997). "Industrial Structures and Dynamics: Evidence, Interpretations and Puzzles." Industrial and Corporate Change 6(1):3-24. Farber, H. (1999). “Mobility and stability: the dynamics of job change in the labour markets.” In O.Ashenfelter and D.Card (eds.), Handbook of Labour Economics, pp. 2439-2483. Amesterdam: Elsevier. Gallouj, C. and F. Gallouj (1996). L’Innovation dans les Services. Paris: Economica. Gusmão, J. and J. Caldas (2004). “The (im)possibility of collective action”. In H.Coelho and B.Espinasse, Proceedings of the 5th Workshop on Agent-Based Simulation, pp.25-31. Lisbon: SCS. Jovanovic, B. (1979). “Job matching and the theory of turnover”. Journal of Political Economy, 87: 972-990. Jovanovic, B. (1982). "Selection and the Evolution of Industry." Econometrica 50(3):649-70. Mamede, R. (2002). “Does innovation really matter for success? The case of an IT consultancy firm”. Dinâmia Working Paper 2002/25, Lisbon. Mata, J. and P. Portugal (2004). "Patterns of Entry, Post-Entry Growth, and Survival: a Comparison Between Domestic and Foreign Owned Firms." Small Business Economics 22(3-4):283-98. Sutton, J. (1997). "Gibralt's Legacy." Journal of Economic Literature 35(1):40-59.