Monopolistic Competition and the Diffusion of New Technology
Year: 1999
Type: article
Abstract: This article analyzes the adoption and diffusion of new technology in a market for a differentiated product with monopolistic competition. I show that in a noncooperative equilibrium ex ante identical firms adopt a new technology at different dates. This equilibrium can be described by a simple distribution function. For nonidentical firms, I state the conditions under which a positive relationship between firm size and speed of adoption exists. The model integrates rank and stock effects. I demonstrate that increased competition often promotes diffusion.
Source: The RAND Journal of Economics
DOI: 10.2307/2556070
Author: Georg Gotz
Institution: University of Vienna
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1572077528