Innovate or Imitate? Who Survives? Who Benefits? Agent-Based Modeling of a Technology-Driven Competitive Industry
In this paper, we study the behavior of innovation and imitation among a group of firms in a competitive industry. To survive, firms have two fundamental choices. They can choose to be innovative firms that develop cost-reducing technology by their own efforts. Alternatively, they can also choose to be an imitating firm, which simply ¡§steals¡¨ the technology from the innovative firms. The choice is adaptive in the sense that firms are able to learn from their experiences. In a standard model of supply and demand, we address the existence and characterization of the competitive equilibrium, including the survival dynamics of firms and implications for social welfare and intellectual property law. Our analytical approach is based upon what known as agent-based computational economics, which is now a standard paradigm for modeling an economy as a complex adaptive system. Within this paradigm, we employ a genetic algorithm to represent firms¡¦ strategic behavior and learning dynamics.
Volume (Year): 1 (2005)
Issue (Month): 2 (July)
|Contact details of provider:|| Postal: 100 Wenhwa Road, Seatwen, Taichung|
Web page: http://www.jem.org.tw/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:jec:journl:v:1:y:2005:i:2:p:143-162. 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: (Yi-Ju Su)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.