Download This PaperMonopolistic Competition and New Products: A Conjectural Equilibrium Approach
21 Pages Posted: 6 Feb 2009
Date Written: January 8, 2009
Abstract
In this paper we generalize the heterogeneous risk adverse agents model of diffusion of new products in a multi-firm, heterogeneous and interacting agents environment. We use a model of choice under uncertainty based on Bayesian theory. We discuss the possibility of product failures, the set of equilibria, their stability and some welfare properties.
Keywords: Product diffusion, Risk aversion, Lock-in, Monopolistic competition, Multiple equilibria.
JEL Classification: L15, D81, O33
Suggested Citation: Suggested Citation
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