Industry dynamics: Foundations for models with an infinite number of firms

@article{Weintraub2011IndustryDF,
  title={Industry dynamics: Foundations for models with an infinite number of firms},
  author={Gabriel Y. Weintraub and C. Lanier Benkard and Benjamin Van Roy},
  journal={J. Economic Theory},
  year={2011},
  volume={146},
  pages={1965-1994}
}
This paper explores the connection between three important threads of economic research offering different approaches to studying the dynamics of an industry with heterogeneous firms. Finite models of the form pioneered by Ericson and Pakes (1995) capture the dynamics of a finite number of heterogeneous firms as they compete in an industry, and are… CONTINUE READING