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

Author

Listed:
  • Min-Hung Tsay

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

Abstract

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
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I2-P161.pdf
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    References listed on IDEAS

    as
    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    2. Fudenberg, Drew & Tirole, Jean, 1987. "Understanding Rent Dissipation: On the Use of Game Theory in Industrial Organization," American Economic Review, American Economic Association, vol. 77(2), pages 176-183, May.
    3. Michael Ostrovsky & Michael Schwarz, 2005. "Adoption of Standards Under Uncertainty," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 816-832, Winter.
    4. Helen Weeds, 2002. "Strategic Delay in a Real Options Model of R&D Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(3), pages 729-747.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Dynamic Entry; Preemption; Rent Equalization; Technology Adoption; Timing Games.;
    All these keywords.

    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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