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 InfoPaper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2010-515.
Length: 35 Pages
Date of creation: Mar 2010
Date of revision:
Other versions of this item:
- Chen, Yijuan, 2012. "Innovation frequency of durable complementary goods," Journal of Mathematical Economics, Elsevier, vol. 48(6), pages 407-421.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-INO-2010-04-17 (Innovation)
- NEP-TID-2010-04-17 (Technology & Industrial Dynamics)
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