search query: @author Schivardi, F. / total: 8
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| Author: | Horvath, M. Schivardi, F. Woywode, M. |
| Title: | On industry life-cycles: delay, entry, and shakeout in beer brewing |
| Journal: | International Journal of Industrial Organization
2001 : JUL, VOL. 19:7, p. 1023-1052 |
| Index terms: | INDUSTRIES LIFE CYCLES INFORMATION LEARNING |
| Language: | eng |
| Abstract: | This paper proposes a new explanation for industry 'shakeout', an event evident in the life-cycle of many industries in which the number of firms drops significantly in a short interval of time. Based on an in-depth analysis of the shakeout in the United States beer brewing industry between 1880 and 1890, the authors propose that industry shakeouts naturally follow periods of mass-entry by firms. Similar patterns are evident in two other industries the authors briefly examine: the US automobile and tire industries. The authors propose a theoretical model of information accumulation to explain entry into an industry. Entrepreneurs are uncertain about the profitability of the industry and this uncertainty is resolved through sufficient accumulation of information regarding the fortunes of incumbent firms. |
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