Consumer inertia, firm growth and industry dynamics

• 成果类型: Article
• 署名作者: Fishman, A; Rob, R
• 署名单位: University of Pennsylvania; Bar Ilan University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/S0022-0531(02)00035-2
• 发表日期: 2003
• 页码: 24-38
• 关键词: consumer inertia; customer loyalty; search cost; firm growth; entry and exit; R&D; Firm size distribution

摘要

We develop a model of firm size, based on the hypothesis that consumers are locked in, because of search costs, with firms they have patronized in the past. As a consequence, older firms have a larger clientele and are able to extract higher profits. The equilibrium of this model yields: (i) A downward sloping density of firm sizes. (ii) Older firms are less likely to exit than younger firms. (iii) Larger firms spend more on RD. (C) 2003 Elsevier Science (USA). All rights reserved.