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Brand effects, mobility costs and industry evolution

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  • Mamede, Ricardo

Abstract

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.

Suggested Citation

  • Mamede, Ricardo, 2005. "Brand effects, mobility costs and industry evolution," MPRA Paper 3998, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3998
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    File URL: https://mpra.ub.uni-muenchen.de/3998/1/MPRA_paper_3998.pdf
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    References listed on IDEAS

    as
    1. John T. Addison & Pedro Portugal, 2002. "Job search methods and outcomes," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 505-533, July.
    2. JosÈ Mata & Pedro Portugal, 2004. "Patterns of Entry, Post-Entry Growth and Survival: A Comparison Between Domestic and Foreign Owned Firms," Small Business Economics, Springer, vol. 22(3_4), pages 283-298, April.
    3. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    4. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    5. Mamede, Ricardo, 2002. "Does innovation (really) matter for success? The case of an IT Consulting Firm," MPRA Paper 3999, University Library of Munich, Germany.
    6. Dosi, Giovanni, et al, 1997. "Industrial Structures and Dynamics: Evidence, Interpretations and Puzzles," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 3-24.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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