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Technological Diffusion with Horizontal Product Differentiation and Adaptation Costs

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  • Stoneman, P

Abstract

In this paper, a model of diffusion incorporating horizontal product differentiation is analyzed. The analysis begins with the case of a single-brand monopolist, is extended to the multibrand case, and then to oligopoly. The speed of diffusion is shown to be related to the number of brands on the market, which in turn is determined endogenously. The model is further developed to analyze the impact of a government subsidy to adaptation costs on the diffusion path. Copyright 1990 by The London School of Economics and Political Science.

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  • Stoneman, P, 1990. "Technological Diffusion with Horizontal Product Differentiation and Adaptation Costs," Economica, London School of Economics and Political Science, vol. 57(225), pages 49-61, February.
  • Handle: RePEc:bla:econom:v:57:y:1990:i:225:p:49-61
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    Cited by:

    1. Erika Badillo & Rosina Moreno, 2012. "“What Drives the Choice of Partners in R&D Cooperation? Heterogeneity across Sectors”," IREA Working Papers 201213, University of Barcelona, Research Institute of Applied Economics, revised Jul 2012.
    2. Stoneman, Paul, 2011. "Soft Innovation: Economics, Product Aesthetics, and the Creative Industries," OUP Catalogue, Oxford University Press, number 9780199697021.
    3. Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 107-129.

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