Parasitic Technologies and Non-Creative Destruction

6 Pages Posted: 1 Nov 2007

See all articles by Stan J. Liebowitz

Stan J. Liebowitz

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics

Date Written: March 2006

Abstract

There appears to be a common misconception, even among economists, that all instances of new technologies driving out old technologies are beneficial. This short essay attempts to point out that some new technologies do not so much replace an old technology as destroy an old technology without a superior technology left in place. The example provided concerns a technology whose sole function is to remove advertising from advertising based programming. Such a technology would unambiguously decrease total surplus.

Keywords: technology, tivo, commercials, advertising

Suggested Citation

Liebowitz, Stan J., Parasitic Technologies and Non-Creative Destruction (March 2006). Available at SSRN: https://ssrn.com/abstract=1026328 or http://dx.doi.org/10.2139/ssrn.1026328

Stan J. Liebowitz (Contact Author)

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics ( email )

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Richardson, TX 75080
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972-883-2807 (Phone)
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HOME PAGE: http://www.utdallas.edu/~liebowit/

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