IDEAS home Printed from https://ideas.repec.org/a/ids/ijores/v20y2014i2p121-155.html
   My bibliography  Save this article

Climbing quality ladders and the evolution of technology dynamics: rethinking the role of demand in technological change

Author

Listed:
  • Debora Di Caprio
  • Francisco J. Santos-Arteaga

Abstract

The current paper analyses how the information gathering capabilities of consumers affect the patterns of technological innovation, establishing an explicit link among market demand, firms and the evolution of technology dynamics. We examine the effects that different decision theoretical driven demand structures may have on the incentives of firms to signal the existence of and introduce technologically superior products. We illustrate how the generation of technological niche markets depends on the ability of decision makers to reverse their information gathering processes and compare the goods observed in different markets before making a choice. In addition, we obtain equilibrium situations where the introduction of technologically superior products and subsequent generation of niche markets, i.e., climbing the technological quality ladder, is suboptimal for the signalling firm. Further, numerical simulations are introduced to illustrate the theoretical results obtained.

Suggested Citation

  • Debora Di Caprio & Francisco J. Santos-Arteaga, 2014. "Climbing quality ladders and the evolution of technology dynamics: rethinking the role of demand in technological change," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 20(2), pages 121-155.
    • Handle: RePEc:ids:ijores:v:20:y:2014:i:2:p:121-155
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=61770
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francisco J. Santos-Arteaga & Debora Di Caprio & Madjid Tavana & Aidan O'Connor, 2017. "Formalising The Demand For Technological Innovations: Rational Herds, Market Frictions And Network Effects," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-43, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijores:v:20:y:2014:i:2:p:121-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=170 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.