Monopolistic Competition and the Diffusion of New Technology

Posted: 8 Mar 2000

See all articles by Georg Götz

Georg Götz

University of Giessen - Department of Economics

Abstract

This article analyzes the adoption and diffusion of new technology in a market for a differentiated product with monopolistic competition. I show that in a noncooperative equilibrium ex ante identical firms adopt a new technology at different dates. This equilibrium can be described by a simple distribution function. For nonidentical firms, I state the conditions under which a positive relationship between firm size and speed of adoption exists. The model integrates rank and stock effects. I demonstrate that increased competition often promotes diffusion.

JEL Classification: L12

Suggested Citation

Götz, Georg, Monopolistic Competition and the Diffusion of New Technology. Available at SSRN: https://ssrn.com/abstract=182354

Georg Götz (Contact Author)

University of Giessen - Department of Economics ( email )

Licher Str. 62
Giessen, Hessen D-35394
Germany
+49 641 99 22050 (Phone)
+49 641 99 19867 (Fax)

HOME PAGE: http://wiwi.uni-giessen.de/home/goetz/

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