References (36)



A Schumpeterian View of the Great Merger Movement in American Manufacturing, 1895-1904

Donald J. Smythe

California Western School of Law

May 2002

This paper offers a Schumpeterian view of the Great Merger Movement in the American manufacturing industries, 1895-1904. From this perspective, the Great Merger Movement was a response to competitive pressures associated with a number of significant technological innovations which occurred at the end of the nineteenth century. Because the implementation of these innovations required large capital investments, and because the returns to the investments would have been highly uncertain if they had been made competitively, firms at turn of the nineteenth century sought to restrain competition. Since the uncertainty precluded cooperating at arms length, cooperation was internalized through horizontal consolidations. The consolidations in turn increased the size of the capital investments undertaken to implement the technological innovations. The theory is supported with historical evidence about the technological environment and industry conditions at the turn of the nineteenth century, and an econometric model is tested using data from the Twelfth and Thirteenth Censuses of Manufactures.

Number of Pages in PDF File: 35

Open PDF in Browser Download This Paper

Date posted: September 15, 2005  

Suggested Citation

Smythe, Donald J., A Schumpeterian View of the Great Merger Movement in American Manufacturing, 1895-1904 (May 2002). Available at SSRN: http://ssrn.com/abstract=799355 or http://dx.doi.org/10.2139/ssrn.799355

Contact Information

Donald J. Smythe (Contact Author)
California Western School of Law ( email )
225 Cedar Street
San Diego, CA 92101
United States

Feedback to SSRN

Paper statistics
Abstract Views: 1,146
Downloads: 126
Download Rank: 157,539
References:  36

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.235 seconds