S. Klepper et Jh. Miller, ENTRY, EXIT, AND SHAKEOUTS IN THE UNITED-STATES IN NEW MANUFACTURED PRODUCTS, International journal of industrial organization, 13(4), 1995, pp. 567-591
During their early evolution, new manufacturing industries commonly ex
perience a 'shakeout' period during which the number of producers decl
ines by 50% or more. In order to gain additional insight into shakeout
s, we develop new information on the patterns of entry and exit for 16
major new manufactured products from their commercial inception throu
gh 1980. We use a model in which entry and exit coordination problems
can generate shakeouts to structure the analysis of the data. We find
that shakeouts are distinguished by entry falling off sharply but rate
s of exit remaining steady or rising over time.