Economics of Industry Evolution (3) Dynamics of industry evolution; empirical evidence and theoretical modeling of firm entry, growth, and exit; entrepreneurship; investment and strategic behavior.
ECON 446W Economics of Industry Evolution (3)
Industries are not static entities. They continually evolve as new products and production techniques are developed. In response to changes in demand and technology, new firms enter while existing firms grow, decline, and exit. This course studies the dynamics of industry evolution using both empirical tools and theoretical models of firm decisions to analyze the following broad questions: How does a new entrant establish a foothold in an industry? How does the entry process differ between industries built around new products versus industries for well-established products? What is the role of entrepreneurship and human capital? How do firms affect their growth and survival prospects by investing in R&D and other types of innovation? How does the life-cycle of high-tech industries differ from consumer products or capital-intensive manufacturing or services? The roles of antitrust policy and regulation in affecting firm turnover and industry evolution are also addressed.
This course will seek to provide students with both theoretical and empirical methods to analyze the economic forces underlying the evolution of industries. Students will develop analytical and writing skills in the course.
This course is one of a series of advanced, writing-intensive seminars in each of seven broad fields in economics; this is a course in the field of industrial organization. The course will count toward both the major and the minor in economics.
Note : Class size, frequency of offering, and evaluation methods will vary by location and instructor. For these details check the specific course syllabus.