Adoption and diffusion of cost reducing innovations: Cournot competition in duopoly
AbstractThis note analyses the adoption and diffusion of innovations in a horizontally differentiated Cournot duopoly in which firms have to choose the dates for adopting a cost-reducing new technology like in Reinganum (1981a). We prove that product differentiation crucially matters in the diffusion pattern of the innovation and in the comparison between the adoption timing in the decentralized economy Vs the social optimum.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2004085.
Date of creation: 00 Dec 2004
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adoption; di?usion; di?erentiated duopoly;
Other versions of this item:
- Raouf, BOUCEKKINE & Omar, LICANDRO & Antonio, MINNITI, 2004. "Adoption and diffusion of cost reducing innovations : Cournot competition in duopoly," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- 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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- Reinganum, Jennifer F, 1981.
"On the Diffusion of New Technology: A Game Theoretic Approach,"
Review of Economic Studies,
Wiley Blackwell, vol. 48(3), pages 395-405, July.
- Reinganum, Jennifer F., . "On the Diffusion of New Technology: A Game Theoretic Approach," Working Papers 312, California Institute of Technology, Division of the Humanities and Social Sciences.
- Beck, Jonathan & Grajek, Michal & Wey, Christian, 2005.
"Hypermarket Competition and the Diffusion of Retail Checkout Barcode Scanning,"
CEPR Discussion Papers
5386, C.E.P.R. Discussion Papers.
- Jonathan Beck & Michal Grajek & Christian Wey, 2005. "Hypermarket Competition and the Diffusion of Retail Checkout Barcode Scanning," Discussion Papers of DIW Berlin 523, DIW Berlin, German Institute for Economic Research.
- Jonathan Beck & Michal Grajek & Christian Wey, 2005. "Hypermarket Competition and the Diffusion of Retail Checkout Barcode Scanning," CIG Working Papers SP II 2005-19, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
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