Estimating the Impact of a Potential Process Innovation and the Optimal Strategy of Licensing
This paper explores the implication of a potential quality-improving innovation through its application to digital camera market. It simulates post-innovation prices and sales of cameras and quantitatively estimates the economic impacts of the innovation based on a random coefficient structural model and existing market data. The results show that the potential gain to producers and consumers from the new technology varies substantially depending on the superiority of the technology and the composition of the adopters. The inventor of the innovation benefit more by licensing it to a larger camera maker and profits increase in the number of adopted camera makers.
|Date of creation:||Oct 2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.latrobe.edu.au/economics|
More information through EDIRC
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.:
- Tarun Kabiraj, 2005. "Technology Transfer In A Stackelberg Structure: Licensing Contracts And Welfare," Manchester School, University of Manchester, vol. 73(1), pages 1-28, 01.
- Rubén Hernández-Murillo & Gerard Llobet, 2004.
"Patent licensing revisited: heterogeneous firms and product differentiation,"
2002-031, Federal Reserve Bank of St. Louis.
- Hernandez-Murillo, Ruben & Llobet, Gerard, 2006. "Patent licensing revisited: Heterogeneous firms and product differentiation," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 149-175, January.
- Ackerberg, Daniel & Lanier Benkard, C. & Berry, Steven & Pakes, Ariel, 2007. "Econometric Tools for Analyzing Market Outcomes," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 63 Elsevier.
- Sougata Poddar & Uday Bhanu Sinha, 2002.
"On Patent Licensing in Spatial Competition,"
Departmental Working Papers
wp0212, National University of Singapore, Department of Economics.
- Junji Xiao, 2008. "Technological advances in digital cameras: Welfare analysis on easy-to-use characteristics," Marketing Letters, Springer, vol. 19(2), pages 171-181, June.
- Daniel A. Ackerberg & Marc Rysman, 2005.
"Unobserved Product Differentiation in Discrete-Choice Models: Estimating Price Elasticities and Welfare Effects,"
RAND Journal of Economics,
The RAND Corporation, vol. 36(4), pages 771-788, Winter.
- Daniel A. Ackerberg & Marc Rysman, 2002. "Unobserved Product Differentiation in Discrete Choice Models: Estimating Price Elasticities and Welfare Effects," NBER Working Papers 8798, National Bureau of Economic Research, Inc.
- Juan Esteban Carranza, 2010.
"Product Innovation and Adoption in Market Equilibrium: The Case of Digital Cameras,"
BORRADORES DE ECONOMÍA Y FINANZAS
007127, UNIVERSIDAD ICESI.
- Carranza, Juan Esteban, 2010. "Product innovation and adoption in market equilibrium: The case of digital cameras," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 604-618, November.
When requesting a correction, please mention this item's handle: RePEc:trb:wpaper:2009.03. 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: (Stephen Scoglio)The email address of this maintainer does not seem to be valid anymore. Please ask Stephen Scoglio to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.