Industrial Dynamics

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This book is based on the papers presented at a conference on "New Issues in Industrial Economics" held at Case Western Reserve University, Cleveland, Ohio, June 8-10, 1987. The conference was organized by the Research Program in Industrial Economics (RPIE) in the Department of Economics at CWRU and was sponsored by The Cleveland Foundation, the Eaton Corporation, and The Standard Oil Company (later renamed BP America, Inc.). Their generous support is gratefully acknowledged. All of the papers have been revised, in several cases extensively, since their presentation at the conference. One of the primary reasons for organizing the conference was the concern that Industrial Economics has become too narrowly focused in most academic programs, largely being confined to Industrial Organization, i.e., issues of public policy towards enterprise with emphasis on antitrust and regulatory policy. This subject definition leaves out a number of interesting and important questions about how industries evolve over time, what the role of technological change (and organizational change) is in that process, and the associated structural changes within industries and firms. The object of this book is to derme these issues and suggest a framework within which they can be analyzed. I would like to thank all the conference participants for their contributions, particularly my colleagues at CWRU, Asim Erdilek and William S. Peirce, without whose encouragement and support the conference would not have taken place.