Firm survival and the evolution of oligopoly

After their commercial introduction, the number of producers of automobiles, tires, televisions, and penicillin initially grew and then experienced a sharp decline or shakeout. Guided by an evolutionary model of entry and exit, firm survival patterns in the four products are examined to determine whether there were common forces governing their distinctive evolution. Predictions on the effects of pre- and post-entry experience and the timing of entry on firm survival are tested. I use the findings to reflect on whey industries experience shakeouts and evolve to be oligopolies.