Adoption and Diffusion of Cost Reducing Innovations: Cournot Competition in Duopoly
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چکیده
منابع مشابه
Adoption and diffusion of cost reducing innovations: Cournot competition in duopoly∗
This note analyses the adoption and diffusion of innovations in a horizontally differentiated Cournot duopoly in which firms have to choose the dates for adopting a cost-reducing new technology like in Reinganum (1981a). We prove that product differentiation crucially matters in the diffusion pattern of the innovation and in the comparison between the adoption timing in the decentralized econom...
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This paper shows that the cost as well as the effectiveness of technology has a differential impact on technology adoption under two alternative modes of competition. If the cost of the technology is high, Bertrand competition provides a stronger incentive to adopt technology than Cournot competition unless the effectiveness of the technology is very low. On the contrary, if the cost of the tec...
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We discuss how owners can use incentive contracts to guide a manager in a duopoly. We show how owners can use the terms of the contract as a strategic lever and that asymmetric information increases the advantage to the firm with the lower marginal cost. The need for a contract depends on the source of asymmetric information and, using this insight, we show why it is important to distinguish th...
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Consider a symmetric differentiated duopoly model in which firms have private market data about the uncertain demand. We analyze two types of duopoly information equilibrium, Cournot and Bertrand, which emerge, respectively, from quantity and price competition, and show that the incentives for information sharing and its welfare consequences depend crucially on the type of competition, the natu...
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The main aim of this study is to construct an explicit form of an analytic solution of a multidimensional difference equation. To this end, we present a nonlinear Cournot duopoly model with unimodal reaction functions, show that its dynamical system is double logistic when the production externalities involved get stronger, and then give a constructive proof of the existence of an analytic solu...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2004
ISSN: 1556-5068
DOI: 10.2139/ssrn.688905