What Companies Must Do Now That Better Is Also Cheaper
The European Business Review, November-December 2015, pp 4649
4 Pages Posted: 2 Jan 2016
Date Written: November 31, 2015
A paradigm shift is occurring in the theory of disruptive innovation, as new "big bang" disruptors increasingly enter the market better and cheaper than offerings from long-time industry incumbents. This article review the four economic drivers of that shift: price deflation, platform exploitation, cross-subsidization, and marginal cost elimination.
Keywords: disruptive innovation, transaction costs, deflation, platforms, marginal costs, cross-subsidization
JEL Classification: D23, D24, D40, D51, O32, O33
Suggested Citation: Suggested Citation