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Article: The Distribution of Demand, Market Structure, and Investment in Technology

TitleThe Distribution of Demand, Market Structure, and Investment in Technology
Authors
KeywordsGradual obsolescence
Market structure
R&D
Issue Date2001
PublisherSpringer-Verlag Wien. The Journal's web site is located at http://www.springer.at/jecon
Citation
Journal Of Economics/ Zeitschrift Fur Nationalokonomie, 2001, v. 73 n. 3, p. 275-297 How to Cite?
AbstractIn a quality-ladder growth model, the dispersion in the demand for quality influences the prices innovators may charge for their innovations and the number of such firms that may obtain market shares at any one time. Under a more dispersed distribution, the innovator may only charge a lower price to cover the entire market. The payoff to innovation declines, causing investment to fall. When the dispersion has reached a critical level, the innovator will no longer price out the incumbents, turning the market into a natural oligopoly with firms selling different grades co-existing at any one time, even if it is optimal for all consumers to buy the highest grade available. Any further increases in dispersion raise the payoff to innovation, inducing greater investment.
Persistent Identifierhttp://hdl.handle.net/10722/85696
ISSN
2015 Impact Factor: 0.914
2015 SCImago Journal Rankings: 0.418
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorTse, CYen_HK
dc.date.accessioned2010-09-06T09:08:08Z-
dc.date.available2010-09-06T09:08:08Z-
dc.date.issued2001en_HK
dc.identifier.citationJournal Of Economics/ Zeitschrift Fur Nationalokonomie, 2001, v. 73 n. 3, p. 275-297en_HK
dc.identifier.issn0931-8658en_HK
dc.identifier.urihttp://hdl.handle.net/10722/85696-
dc.description.abstractIn a quality-ladder growth model, the dispersion in the demand for quality influences the prices innovators may charge for their innovations and the number of such firms that may obtain market shares at any one time. Under a more dispersed distribution, the innovator may only charge a lower price to cover the entire market. The payoff to innovation declines, causing investment to fall. When the dispersion has reached a critical level, the innovator will no longer price out the incumbents, turning the market into a natural oligopoly with firms selling different grades co-existing at any one time, even if it is optimal for all consumers to buy the highest grade available. Any further increases in dispersion raise the payoff to innovation, inducing greater investment.en_HK
dc.languageengen_HK
dc.publisherSpringer-Verlag Wien. The Journal's web site is located at http://www.springer.at/jeconen_HK
dc.relation.ispartofJournal of Economics/ Zeitschrift fur Nationalokonomieen_HK
dc.subjectGradual obsolescenceen_HK
dc.subjectMarket structureen_HK
dc.subjectR&Den_HK
dc.titleThe Distribution of Demand, Market Structure, and Investment in Technologyen_HK
dc.typeArticleen_HK
dc.identifier.openurlhttp://library.hku.hk:4550/resserv?sid=HKU:IR&issn=0931-8658&volume=73&spage=275&epage=297&date=2001&atitle=The+Distribution+Of+Demand,+Market+Structure+And+Investment+In+Technologyen_HK
dc.identifier.emailTse, CY: cytse@hkucc.hku.hken_HK
dc.identifier.authorityTse, CY=rp01099en_HK
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1007/BF01257924en_HK
dc.identifier.scopuseid_2-s2.0-0345975859en_HK
dc.identifier.hkuros60933en_HK
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-0345975859&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume73en_HK
dc.identifier.issue3en_HK
dc.identifier.spage275en_HK
dc.identifier.epage297en_HK
dc.identifier.isiWOS:000169710300003-
dc.publisher.placeAustriaen_HK
dc.identifier.scopusauthoridTse, CY=7103295092en_HK

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