This article reviews recent developments in the study of firm and industry dynamics, with a special emphasis on the econometric endogeneity of market structure. The endogeneity of market structure follows from the presence of serially correlated unobservable shocks to the profitability of...

This article reviews recent developments in the study of industry dynamics, with a special emphasis on the econometric endogeneity of market structure. Endogeneity of market structure follows from the presence of serially correlated unobservable shocks to the profitability of firms' dynamic...