IDEAS home Printed from https://ideas.repec.org/a/cai/reldbu/rel_731_0055.html
   My bibliography  Save this article

Innovation et effet de remplacement du monopole : le cas des ressources non renouvelables

Author

Listed:
  • Jean-Christophe Poudou

Abstract

Considering a cost reducing innovation, Arrow (1962) shows that a firm in monopoly suffers the replacement effect, that is, its valuation of the innovation is sub-optimal and less than in a context of technological competition. We look also at this problem but within the framework of an economy exploiting an exhaustible resource. One can show that the replacement effect is not always verified and can be reversed: the mining monopoly doesn’t “rest on its laurels” when the price elasticity of demand for the resource is “deeply” increasing. We discuss this result for the case of dynamic incentives to innovate and we show that, in those situations of demand, the mining monopoly innovate earlier that the competitive mining firm.

Suggested Citation

  • Jean-Christophe Poudou, 2007. "Innovation et effet de remplacement du monopole : le cas des ressources non renouvelables," Recherches économiques de Louvain, De Boeck Université, vol. 73(1), pages 55-75.
  • Handle: RePEc:cai:reldbu:rel_731_0055
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REL_731_0055
    Download Restriction: free

    File URL: http://www.cairn.info/revue-recherches-economiques-de-louvain-2007-1-page-55.htm
    Download Restriction: free

    Other versions of this item:

    More about this item

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:reldbu:rel_731_0055. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire). General contact details of provider: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.