Innovation frequency of durable complementary goods
AbstractFocused on innovation frequency of durable complementary goods, this paper shows that interdependency of innovation decisions generically gives rise to coordination failure between the producers. More importantly, the coordination failure may arise in opposite directions: Not only may the producers delay introducing new products, they may also introduce new products faster than the social optimum. The possibility of hastened innovations is in contrast to the conclusion from the literature focused on the monopolistic setting. The results provide a caution for policy-makers, and on the other hand serve as benchmarks for future studies incorporating competition.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Mathematical Economics.
Volume (Year): 48 (2012)
Issue (Month): 6 ()
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Web page: http://www.elsevier.com/locate/jmateco
Dynamic innovation; Durable goods; Complements;
Other versions of this item:
- Yijuan Chen, 2010. "Innovation Frequency of Durable Complementary Goods," ANU Working Papers in Economics and Econometrics 2010-515, Australian National University, College of Business and Economics, School of Economics.
- 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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