Monopolistic Competition and the Diffusion of New Technology
Posted: 8 Mar 2000
Abstract
This article analyzes the adoption and diffusion of new technology in a market for a differentiated product with monopolistic competition. I show that in a noncooperative equilibrium ex ante identical firms adopt a new technology at different dates. This equilibrium can be described by a simple distribution function. For nonidentical firms, I state the conditions under which a positive relationship between firm size and speed of adoption exists. The model integrates rank and stock effects. I demonstrate that increased competition often promotes diffusion.
JEL Classification: L12
Suggested Citation: Suggested Citation
Götz, Georg, Monopolistic Competition and the Diffusion of New Technology. Available at SSRN: https://ssrn.com/abstract=182354
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