Empirical models of firms and industries

Empirical Models of Pricing in Industries with Differentiated-Products

Neural networks and the evolution of firms and industries:

Introduction The basic objectives of this paper are twofold: (1) to show how neural networks might be applied to and used to analyse firms; and (2) to investigate the effect of different 'firm types' on evolutionary processes at the industry level. Applying neural networks to economic, managerial and financial issues is not, in itself, original. In business and finance, neural network analysis ...

The Growth of Firms and the Evolution of Industries

Fast growth by a firm often can lead to conflict with its competitors over market shares. This conflict impacts on the growth rate of the firm as well as on industry structure. The nature of these impacts depends on the competitive strategies adopted by the firm and its competitors. Alternative patterns of strategies are identified and analyzed, including patterns associated with Schumpeter’s t...

Chandlerian Firms vs Entrepreneurship: Implications for the Organization of Industries

In our model the skilled workers (e.g. managers) can be employed by the established (Chandlerian) firms or they can set-up their own firm. We obtain two equilibria where either the entrepreneurial sector does not arise or most of the skilled workers found their own firms. The Chandlerian equilibrium exhibits lower inequality in earnings between skills and more diversified large companies. Lower...

Services and the Business Models of Product Firms: An Empirical Analysis of the Software Industry

This article presents one of the first large-sample empirical analyses of the impact of services on the business models (i.e. the financial performance) of product firms. We build upon existing and recent literature in technology management, economics, and service operations in order to propose and test hypotheses regarding the relationship between level of service revenues and operating profit...