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

Author

Listed:
  • Youngsheng Xu

    (Georgia State University)

  • Naoki Yoshihara

    (School of Management, Kochi University of Technology)

Abstract

In this paper, we examine the performance of the market mechanismby focusing on whether no one, in the `long-run', can be left behind withtechnological 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

  • Youngsheng Xu & Naoki Yoshihara, 2019. "Does dynamic market competition with technological innovation leave no one behind?," Working Papers SDES-2019-11, Kochi University of Technology, School of Economics and Management, revised Nov 2019.
    • Handle: RePEc:kch:wpaper:sdes-2019-11
    as

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    File URL: http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2019-11.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    dynamic market competition with technological innovation; Hicksian Optimism; the Walrasian allocation rule; Pareto eciency; 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

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