Published 1981
| public
Journal Article
Market structure and the diffusion of new technology
- Creators
- Reinganum, Jennifer F.
Abstract
This article shows that if the value of adopting a cost-reducing, capitalembodied process innovation declines with the number of firms which have already adopted it, then the firms adopt the new technology in sequence so that it is "diffused" into the industry over time. This diffusion is due purely to strategic behavior; firms are assumed to be identical and information regarding the value of the innovation is perfect. Furthermore, this phenomenon persists even in the limiting case of infinitely many firms.
Additional Information
© 1981 RAND Corporation. This research was partially funded by a grant from the National Science Foundation. This article has benefited from the helpful comments of the Editorial Board and anonymous referees. Any remaining errors are, of course, my own. Formerly SSWP 360.Additional details
- Eprint ID
- 83615
- Resolver ID
- CaltechAUTHORS:20171130-164121993
- NSF
- Created
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2017-12-01Created from EPrint's datestamp field
- Updated
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2021-11-15Created from EPrint's last_modified field