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


  • Jean-Christophe Poudou


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

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    References listed on IDEAS

    1. Mongin, P., 1998. "Does Optimization Imply Rationality?," Papers 9817, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
    2. Philippe Mongin, 2003. "L'axiomatisation et les théories économiques," Revue économique, Presses de Sciences-Po, vol. 54(1), pages 99-138.
    3. Machlup, Fritz, 1978. "Methodology of Economics and Other Social Sciences," Elsevier Monographs, Elsevier, edition 1, number 9780124645509 edited by Shell, Karl.
    4. Debreu, Gerard, 1993. "Existence of competitive equilibrium," Handbook of Mathematical Economics,in: K. J. Arrow & M.D. Intriligator (ed.), Handbook of Mathematical Economics, edition 4, volume 2, chapter 15, pages 697-743 Elsevier.
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    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


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