Skip to main content
SpringerLink
Log in

Firm Entry Diversity, Resource Space Heterogeneity and Market Structure

  • Chapter
  • First Online:
Emergent Results of Artificial Economics

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 652))

Abstract

Evolutionary explanations of market structures have usually focused on the selection pressures impacted by a number of factors such as scale economies, niche width, firm size and consumer heterogeneity. How selection processes work in markets is highly dependent on the available firm type variation at entry. In order to explore the implications of different degrees of firm diversity at entry on posterior market selection processes, we develop an agent-based computational model. Results indicate that a proper understanding of market selection processes should, indeed, involve understanding the effects of firm type variation at market entry.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Barron, D. N. (1999). The structuring of organizational populations. American Sociological Review, 64(3), 421–445.

    Article  Google Scholar 

  2. Barron, D. N. (2001). Organizational ecology and industrial economics: a comment on Geroski. Industrial and Corporate Change, 10 (2), 541–548.

    Article  Google Scholar 

  3. Barron, D. N. (2001). Simulating the dynamics of organizational populations. In: Lomi, A., Larsen E. R.(Eds). Dynamics of Organizations: Computational Modeling and Organization Theories, Cambridge, MA: MIT Press, p. 209–242.

    Google Scholar 

  4. Boone, C., van Witteloostuijn, A., Carroll, G. R. (2002). Resource distributions and market partitioning: Dutch daily newspaper organisations, 1968 to 1994. American Sociological Review 67(3), 408–31.

    Article  Google Scholar 

  5. Carroll, G. R., Hannan, M..T. (2000). The Demography of Corporations and Industries. Princeton: Princeton University Press.

    Google Scholar 

  6. Carroll, G. R., Kessina O. M. (2005). The ecology of entrepreneurship. In: Alvarez, S., Agarwal, R., Sorenson, O. (Eds). Handbook of Entrepreneurship Research: Disciplinary Perspectives (International Handbook Series on Entrepreneurship). New york: Springer, p. 167–200.

    Google Scholar 

  7. Chang, M-H. (2009). Industry dynamics with knowledge-based competition: a computational study of entry and exit patterns. Journal of Economic Interaction and Coordination, 4(1), 73–114.

    Article  Google Scholar 

  8. Ganco, M., Agarwal, R. (2009). Performance differentials between diversifying entrants and entrepreneurial start-ups: a complexity approach. Academy of Management Review, 34(2), 228–252.

    Article  Google Scholar 

  9. García-Díaz, C., van Witteloostuijn, A., P´eli, G. (2008). Market dimensionality and the proliferation of small-scale firms. Advances in Complex Systems, 11(2), 231–247.

    Google Scholar 

  10. Kovacs, B., Carroll G. R. (2010). Niche width and scale in organizational competition: a computational approach. Computational and Mathematical Organization Theory, 16(1), 29–60.

    Article  Google Scholar 

  11. Klepper, S., Simons, K. L.(2000). The making of an oligopoly: firm survival and technological change in the evolution of the U.S. tire industry. Journal of Political Economy 108(4): 728–760.

    Google Scholar 

  12. Lee, J., Harrison, J.R. (2001). Innovation and industry bifurcation: the evolution of R&D strategy. Industrial and Corporate Change 10(1): 115–149.

    Article  Google Scholar 

  13. Levinthal, D. A. (1997). Adaptation on rugged landscapes. Management Science, 43(7), 934–950.

    Article  Google Scholar 

  14. Lewin, A. Y., Weigelt, C. B., Emery, J. D. (2004) Adaptation and selection in strategy and change: Perspectives on strategic change in organizations. In: Poole, M. S., Van de Ven, A. H. (Eds). Handbook of Organizational Change and Innovation, p. 108–160. New York: Oxford University Press.

    Google Scholar 

  15. Lomi, A., Larsen, E. R, Freeman, J. H. (2005). Things change: dynamic resource constraints and system-dependent selection in the evolution of organizational populations. Management Science, 51(6), 882–903.

    Article  Google Scholar 

  16. Lomi, A., Larsen, E. R, Wezel, F. C. (2010). Getting there: exploring the role of expectations and pre-production delay in processes of organizational founding. Organization Science, 21(1), 132–149.

    Article  Google Scholar 

  17. Mas-Colell, A., Whinston, M. D., Green, J. R. (1995). Microeconomic Theory. USA: Oxford University Press.

    Google Scholar 

  18. Péli, G., Nooteboom, B. (1999). Market partitioning and the geometry of the resource space. American Journal of Sociology, 104(2), 11321153.

    Google Scholar 

  19. Ruef, M. (2006). Boom and bust: the effect of entrepreneurial inertia on organizational populations. In: Baum, J. A. C., Dobrev, S. D., van Witteloostuijn, A. (Eds). Ecology and Strategy, Advances in Strategic Management, Emerald Group, p. 29–72.

    Google Scholar 

  20. Stirling, A. (2007). A general framework for analysing diversity in science, technology and society. Journal of the Royal Society Interface, 4 (15), 707–719.

    Article  Google Scholar 

  21. van Witteloostuijn, A., Boone, C. (2006). A resource-based theory of market structure and organizational form. Academy of Management Review, 31(2), 409426.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Management Department (ACED), Faculty of Applied Economics, University of Antwerp, Prinsstraat 13, BE-2000, Antwerp, Belgium

    César García-Díaz & Arjen van Witteloostuijn

Authors
  1. César García-Díaz
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Arjen van Witteloostuijn
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to César García-Díaz .

Editor information

Editors and Affiliations

  1. , Department LDI/bode 143, Wageningen University, Hollandseweg 1, Wageningen, 6706KN, Netherlands

    Sjoukje Osinga

  2. , Department LDI/bode 143, Wageningen University, Hollandseweg 1, Wageningen, 6706KN, Netherlands

    Gert Jan Hofstede

  3. LEI, Wageningen UR, Alexanderveld 5, Den Haag, 2585DB, Netherlands

    Tim Verwaart

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

García-Díaz, C., van Witteloostuijn, A. (2011). Firm Entry Diversity, Resource Space Heterogeneity and Market Structure. In: Osinga, S., Hofstede, G., Verwaart, T. (eds) Emergent Results of Artificial Economics. Lecture Notes in Economics and Mathematical Systems, vol 652. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-21108-9_13

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-21108-9_13

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-21107-2

  • Online ISBN: 978-3-642-21108-9

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation