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Does dynamic market competition with technological innovation leave no one behind?

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  • Xu, Yongsheng
  • Yoshihara, Naoki

Abstract

In this paper, we examine the performance of the market mechanism by focusing on whether no one, in the `long-run', can be left behind with technological innovation in the economy. We show that the market mechanism with technological innovation unavoidably leaves some individuals behind. We extend this negative result to a broader class of resource allocation mechanisms.

Suggested Citation

  • Xu, Yongsheng & Yoshihara, Naoki, 2019. "Does dynamic market competition with technological innovation leave no one behind?," Discussion Paper Series 699, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:699
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/30862/DP699.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    dynamic market competition with technological innovation; Hicksian Optimism; the Walrasian allocation rule; Pareto efficiency; individual rationality;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D60 - Microeconomics - - Welfare Economics - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General

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