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Technological Diffusion with Horizontal Product Differentiation and Adaptation Costs

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  • Stoneman, P

Abstract

In this paper, a model of diffusion incorporating horizontal product differentiation is analyzed. The analysis begins with the case of a single-brand monopolist, is extended to the multibrand case, and then to oligopoly. The speed of diffusion is shown to be related to the number of brands on the market, which in turn is determined endogenously. The model is further developed to analyze the impact of a government subsidy to adaptation costs on the diffusion path. Copyright 1990 by The London School of Economics and Political Science.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 57 (1990)
Issue (Month): 225 (February)
Pages: 49-61

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Handle: RePEc:bla:econom:v:57:y:1990:i:225:p:49-61

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Cited by:
  1. Erika Badillo & Rosina Moreno, 2012. "“What Drives the Choice of Partners in R&D Cooperation? Heterogeneity across Sectors”," AQR Working Papers 201206, University of Barcelona, Regional Quantitative Analysis Group, revised Jul 2012.
  2. Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 107-129.

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