Innovation et effet de remplacement du monopole : le cas des ressources non renouvelables
AbstractConsidering a cost reducing innovation, Arrow (1962) shows that a firm in monopoly suffers the replacement effect, that is, its valuation of the innovation is sub-optimal and less than in a context of technological competition. We look also at this problem but within the framework of an economy exploiting an exhaustible resource. One can show that the replacement effect is not always verified and can be reversed: the mining monopoly doesn?t ?rest on its laurels? when the price elasticity of demand for the resource is ?deeply? increasing. We discuss this result for the case of dynamic incentives to innovate and we show that, in those situations of demand, the mining monopoly innovate earlier that the competitive mining firm.
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Bibliographic InfoArticle provided by De Boeck Université in its journal Recherches économiques de Louvain.
Volume (Year): 73 (2007)
Issue (Month): 1 ()
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Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm
Other versions of this item:
- Jean-Christophe POUDOU, 2007. "Innovation et effet de remplacement du monopole : le cas des ressources non renouvelables," Discussion Papers (REL - Recherches Economiques de Louvain) 2007012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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