Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25612 
Year of Publication: 
2007
Series/Report no.: 
Jena Economic Research Papers No. 2007,043
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
We examine turbulence over the product life cycle using the lowest possible level of industry aggregation, allowing for the use of panel data to study the evolution of single product markets. We find that replacement of exiting firms by subsequent entry plays a primary role in generating turbulence in high growth markets, while displacement of incumbents by recent entrants is the main selection force in declining markets. As product life cycles progress, trial-and-error entry subsides, and turbulence decreases.
Subjects: 
Entry
Exit
Selection
Product life cycle
Replacement
Displacement
JEL: 
L11
Document Type: 
Working Paper

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