Two Technological Revolutions
The IPOs of the Electricity/Internal Combustion revolution created more lasting value than the IPOs of the IT revolution. Stock-market data point to two explanations for this. First, computer prices have been falling much faster than did those of electricity and internal combustion in the 1890-1930 period, and so the value of each generation of computer-intensive entrants is reduced by later entrants. And, second, the pre-1973 vintages reacted to the microcomputer relatively quickly, perhaps because the threat of being taken over is now higher than it was 70-100 years ago. (JEL: O3, N2) Copyright (c) 2003 The European Economic Association.
Year of publication: |
2003
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Authors: | Jovanovic, Boyan ; Rousseau, Peter L. |
Published in: |
Journal of the European Economic Association. - MIT Press. - Vol. 1.2003, 2-3, p. 419-428
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Publisher: |
MIT Press |
Saved in:
Online Resource
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