Technology Stability and Change: An Integrated Evolutionary Approach
Journal of Economic Issues, 2006, Vol. XL, No. 3: 707-742
Posted: 7 Jun 2013
Date Written: September 1, 2006
this paper aims to broaden the understanding of the process of technological change and standardization through an evolutionary approach, which avoids the determinism of conventional orthodox models of technology diffusion and standardization. A model is developed to explore how change between competing technological standards can be initiated endogenously within an industry. We do this by first focusing on the characteristics of challenging technological innovations themselves. We then focus on the role of the changing preferences of agents adopting the technologies and how preference evolution can also induce technological change. Technological change at the industry level is important because it can influence the development of larger macroeconomic structures and institutions such as corporations, political regulatory structures, growth rates, and the accumulation and structure of capital. To achieve our goals we have developed an agent-based model (ABM) using distributed artificial intelligence (DAI) concepts drawn from the general methodology of social simulation.
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