The footprint of evolutionary processes of learning and selection upon the statistical properties of industrial dynamics

Giovanni Dosi, Marcelo Pereira and Maria Enrica Virgillito

Industrial and Corporate Change, 2017, vol. 26, issue 2, 187-210

Abstract: Evolutionary theories of economic change identify the processes of idiosyncratic learning by individual firms and of market selection as the two main drivers of the dynamics of industries. Are such processes able to account for the statistical regularities which industrial structures and dynamics display? In this work we address this question by means of a simple multi-firm model formalizing the mechanisms of learning and selection. As such, despite its simplicity, the model is able to robustly reproduce an ensemble of empirical stylized facts, including ample heterogeneity in productivity distributions, persistent market turbulence, and fat-tailed distribution of growth rates.

JEL-codes: C63 L11 L6 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (50)

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Related works:
Working Paper: THE FOOTPRINT OF EVOLUTIONARY PROCESSES OF LEARNING AND SELECTION UPON THE STATISTICAL PROPERTIES OF INDUSTRIAL DYNAMICS (2016)
Working Paper: The footprint of evolutionary processes of learning and selection upon the statistical properties of industrial dynamics (2015)
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