IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Competitive Diffusion

Listed author(s):
  • Jovanovic, Boyan
  • MacDonald, Glenn M

This paper studies the evolution of a competitive industry in which a fixed number of firms reduce costs by innovating and by imitating their rivals' technologies. As the firms' technologies gradually improve, industry output expands and price falls. Technological leaders tend to rely on innovations to reduce their costs, whereas the laggards rely more on imitation. Imitation causes technology to spread from the leaders to the followers and forces some convergence of technology among firms as the industry matures. This convergence is accompanied by faster growth of smaller firms and a consequent tightening of the distribution of output over firms. Copyright 1994 by University of Chicago Press.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://dx.doi.org/10.1086/261920
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 102 (1994)
Issue (Month): 1 (February)
Pages: 24-52

as
in new window

Handle: RePEc:ucp:jpolec:v:102:y:1994:i:1:p:24-52
Contact details of provider: Web page: http://www.journals.uchicago.edu/JPE/

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. N/A, 1980. "Chapter II. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 94(1), pages 31-46, November.
  2. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn.
  3. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  4. Kenneth J. Arrow, 1962. "The Economic Implications of Learning by Doing," Review of Economic Studies, Oxford University Press, vol. 29(3), pages 155-173.
  5. N/A, 1980. "Chapter III. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 93(1), pages 36-48, August.
  6. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-121, January.
  7. anonymous, 1980. "What’s wrong with macroeconomics," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sum, pages -.
  8. Andolfatto, D. & MacDonald, G.M., 1995. "Endogeneous Technological Change, Growth, and Aggregate Functions," Working Papers 9504, University of Waterloo, Department of Economics.
  9. N/A, 1980. "Chapter III. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 94(1), pages 47-61, November.
  10. anonymous, 1980. "The New Zealand economy six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 43, pages -, november.
  11. Anonymous, 1980. "The Biologic and Economic Assessment of Endrin," Technical Bulletins 157728, United States Department of Agriculture, Economic Research Service.
  12. Anonymous & Hillman, Jimmye S., 1980. "Macroeconomic Linkages to Agricultural Trade," 1980: Macroeconomic Linkages to Agricultural Trade Meeting, December 1980, Tucson, AZ 52378, International Agricultural Trade Research Consortium.
  13. Latsis,, 1980. "Method and Appraisal in Economics," Cambridge Books, Cambridge University Press, number 9780521280501, May.
  14. N/A, 1980. "Chapter II. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 91(1), pages 27-42, February.
  15. N/A, 1980. "Chapter I. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 92(1), pages 6-17, May.
  16. N/A, 1980. "Chapter III. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 91(1), pages 43-67, February.
  17. Mansfield, Edwin & Schwartz, Mark & Wagner, Samuel, 1981. "Imitation Costs and Patents: An Empirical Study," Economic Journal, Royal Economic Society, vol. 91(364), pages 907-918, December.
  18. Karl Shell, 2010. "A Model of Inventive Activity and Capital Accumulation," Levine's Working Paper Archive 1409, David K. Levine.
  19. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  20. Chari, V V & Hopenhayn, Hugo, 1991. "Vintage Human Capital, Growth, and the Diffusion of New Technology," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1142-1165, December.
  21. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
  22. anonymous, 1980. "The New Zealand economy - six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 43, pages -, may.
  23. N/A, 1980. "Chapter II. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 93(1), pages 20-35, August.
  24. N/A, 1980. "Chapter II. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 92(1), pages 18-32, May.
  25. anonymous, 1980. "New Zealand economic chronology 1979," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 43, pages -, january/f.
  26. Boyan Jovanovic & Rafael Rob, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Oxford University Press, vol. 56(4), pages 569-582.
  27. N/A, 1980. "Chapter I. The Economy in 1979," National Institute Economic Review, National Institute of Economic and Social Research, vol. 91(1), pages 8-26, February.
  28. Anonymous, 1980. "The Biologic and Economic Assessment of Diallate," Technical Bulletins 157725, United States Department of Agriculture, Economic Research Service.
  29. Havlicek, Joseph Jr., 1980. "Lecture notes in econometric methods and analysis," Honorary Collections, Joseph Havlicek, Jr., AgEcon Search, number 207771.
  30. N/A, 1980. "Calendar of Economic Events April—June 1980," National Institute Economic Review, National Institute of Economic and Social Research, vol. 93(1), pages 80-82, August.
  31. -, 1980. "Economic relations of Latin America with Europe," Cuadernos de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number ns.n. edited by Cepal.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:102:y:1994:i:1:p:24-52. 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: (Journals Division)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.