Technological Change And Market Structure: An Evolutionary Approach
AbstractThe paper studies an inter-temporal market context in which firms innovate, imitate, and compete in quantities and technological choices each period. Potential entrants enter if there are profitable opportunities; incumbent firms exit when they go bankrupt. The key aspect of the model is that technological change evolves along a directed graph. This graph reflects both the direction of technological change and the magnitude of costs involved in switching technologies. In this set-up, our main concern is to explore the implications of different technological structures on entry/exit dynamics and on the evolution of market characteristics (market concentration, prof itability variance, etc. )
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1991-10.
Length: 35 pages
Date of creation: Jan 1991
Date of revision:
Publication status: Published by Ivie
Other versions of this item:
- Vega-Redondo, Fernando, 1996. "Technological change and market structure: An evolutionary approach," International Journal of Industrial Organization, Elsevier, vol. 14(2), pages 203-226.
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- Mansfield, Edwin, 1983. "Technological Change and Market Structure: An Empirical Study," American Economic Review, American Economic Association, vol. 73(2), pages 205-09, May.
- Iwai, Katsuhito, 1984. "Schumpeterian dynamics, Part II : Technological progress, firm growth and `economic selection'," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 321-351.
- Schmalensee, Richard, 1987. "Collusion versus Differential Efficiency: Testing Alternative Hypotheses," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 399-425, June.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, January.
- Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
- Iwai, Katsuhito, 1984. "Schumpeterian dynamics : An evolutionary model of innovation and imitation," Journal of Economic Behavior & Organization, Elsevier, vol. 5(2), pages 159-190, June.
- Asma Raies, 2004. "Innovation, learning and productivity improvement in developing countries : a dynamic model of technological adoption and industry evolution," Cahiers de la Maison des Sciences Economiques bla04112, Université Panthéon-Sorbonne (Paris 1).
- Fernando Vega Redondo, 1993. "Industrial Dynamics, Path-Dependence And Technological Change," Working Papers. Serie AD 1993-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Raies, asma, 2005. "Technical change in Developing Countries: A dynamic model of adoption, learning and industry evolution," MPRA Paper 9529, University Library of Munich, Germany.
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