Information acquisition and assimilation capacities as determinants of technological niche markets

We present an equilibrium model where the demand side of market determines strategic incentives firms when considering introduction technologically superior products (TSPs) and subsequent dynamic evolution configuration. Market is built on conventional features defining behavior decision-makers (DMs), who are required to acquire information sequentially about characteristics describing products. Firms may signal TSPs, though only sufficiently experimental DMs update their beliefs selecting a product from firm. That is, technological habits inertia condition select potential within market. In particular, choices made by will be determined capacity assimilate signals TSPs attitude towards risk. identify conditions for emergence niche markets allowing that thrive.