The Requirements for the Degree of Master of Science in Economics
نویسنده
چکیده
Firms in the hard disk drive industry are continually engaging in R & D and improving the quality of their products. We explore various determinants of the product innovation incentives for firms concerned with both their static and expected future profitability. We estimate the observed innovation outcomes as a function of market condition variables which have significant impact on innovation decisions. In addition, we estimate logit utilities that describe the marginal willingness to pay for quality improvements. One aspect of utility is that the willingness to pay for faster access time to data may be initially low but increases over time. The firms' decisions to introduce faster access time are partly motivated by dynamic considerations. Thesis Supervisors: Panle Jia and Stephen Ryan Titles: Associate Professors of Economics
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