The pre-producers
By: Boyan Jovanovic.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10771; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10771.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Industries -- Finance.
Description: "Until its sales of a product materialize, a firm is a "pre-producer" in the market for that product.  That firm may may be a new start-up, or it may already sell other products.  Firms that do not succeed in generating sales eventually become discouraged and move on to other activities.  When this fate befalls a lot of firms, as it recently did in several IT-related businesses, the industry experiences a "shakeout." In the model that I will present, during the shakeout some firms switch to flatter, safer earnings.  This switch raises earnings at the time of the shakeout but lowers them in the long run, and it therefore raises earnings-price ratios.  This has happened on the Nasdaq since March, 2000 when the Nasdaq shakeout began"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/21/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.