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Preemption and rent equalization in the adoption of new technology: comment


  • Min-Hung Tsay

    () (Department of International Business, National Taiwan University, Taipei 106, Taiwan.)


In this comment, we show that the existence of the preemption equilibrium in Fudenberg and Tirole (Review of Economics Studies, vol. 52, PP. 383-401, 1985)'s continuous-time games of timing is not guaranteed under their assumptions.

Suggested Citation

  • Min-Hung Tsay, 2012. "Preemption and rent equalization in the adoption of new technology: comment," Economics Bulletin, AccessEcon, vol. 32(2), pages 1680-1686.
  • Handle: RePEc:ebl:ecbull:eb-11-00700

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    References listed on IDEAS

    1. Michael Ostrovsky & Michael Schwarz, 2005. "Adoption of Standards Under Uncertainty," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 816-832, Winter.
    2. Helen Weeds, 2002. "Strategic Delay in a Real Options Model of R&D Competition," Review of Economic Studies, Oxford University Press, vol. 69(3), pages 729-747.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, July.
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    More about this item


    Dynamic Entry; Preemption; Rent Equalization; Technology Adoption; Timing Games.;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance


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