Technological Change, Entry and Stock Market Dynamics: An Analysis of Transition in a Monopolistic Economy

This paper explores an equilibrium model for industry entry dynamics and technological change. We focus on the share valuation of firms in the transition as technology changes, and whether or not share prices are always increasing when technology improves. We find that there can be a U-shaped transition dynamic, so that an initial boom in share price is followed by a temporary fall in share price even though the underlying technology is improving.

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Year of publication:	2002
Authors:	Datta, Bipasa ; Dixon, Huw D.
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	technology \| share-price \| entry \| industry \| dynamic.

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Series:	CESifo Working Paper ; 641
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	845348132 [GVK] hdl:10419/76054 [Handle] RePec:ces:ceswps:_641 [RePEc]
Classification:	D40 - Market Structure and Pricing. General ; D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; L10 - Market Structure, Firm Strategy, and Market Performance. General ; O30 - Technological Change; Research and Development. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10010315414