Journal of the American Statistical Association · 1958 · 118 citations · 0 references
Social SciencesBusiness EconomicsEconomicsIndustrial OrganizationStochastic ModelingStochastic ProcessesDynamic Economic ModelsEconomic DynamicsMarket ConcentrationMarkov ChainsMarkov ProcessesEquilibriumEquilibrium Industry StructureFirm DynamicsFirm Size DistributionIndustrial Organization ConcentrationIndustry DynamicsStochastic Process Analysis
Abstract In the first section of this paper, the probabilistic method of Markov is applied to the analysis of an industrial structure. The concept of dynamic equilibrium for a group of firms is introduced, and a technique for exploring the characteristics of this state is presented. The applicability of this method is then illustrated by using it to investigate trends with respect to the concentration and mobility of firms in the iron and steel industry in the United States.