Conducting Simulation Experiments to Test Historical Explanations: The Historical Development of the German Dye Industry 1857-1913

43 Pages Posted: 21 Mar 2015  

Thomas Brenner

University of Marburg

Johann Peter Murmann

UNSW Australia Business School - AGSM

Date Written: February 1, 2015

Abstract

In a simulation experiment, building on the abductive simulation approach of Brenner and Werker (2007), we test historical explanations for why German firms came to surpass British and France firms and to dominate the global synthetic dye industry for three decades before World War 1 while the U.S. never achieved large market share despite large home demand. Murmann and Homburg (2001) and Murmann (2003) argued that German firms came to dominate the global industry because of (1) the high initial number of organic chemists in Germany at the start of the industry in 1857, (2) the high responsiveness of the German university system and (3) the late (1877) introduction of a patent regime in Germany as well as the more narrow construction of this regime compared to Britain, France and the U.S. Our simulation experiments show that the responsiveness of the German university system was especially important for the development of the dominant German position.

Keywords: simulation experiments, synthetic dye industry, testing historical explanations

JEL Classification: L65, L25, L26, M13, N60, B52, C63

Suggested Citation

Brenner, Thomas and Murmann, Johann Peter, Conducting Simulation Experiments to Test Historical Explanations: The Historical Development of the German Dye Industry 1857-1913 (February 1, 2015). UNSW Business School Research Paper No. 2015 MGMT 02. Available at SSRN: https://ssrn.com/abstract=2581228

Thomas Brenner

University of Marburg ( email )

Universitätsstrasse 24
D-35032 Marburg, D-35032
Germany

Johann Peter Murmann (Contact Author)

UNSW Australia Business School - AGSM ( email )

UNSW Sydney, NSW 2052
Australia
+61-2-9385-9733 (Phone)

HOME PAGE: http://professor-murmann.net

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