Durable goods, innovation and network externalities


Cerquera, Daniel


[img]
Preview
PDF
dp07086.pdf - Published

Download (466kB)

URL: http://ub-madoc.bib.uni-mannheim.de/1860
URN: urn:nbn:de:bsz:180-madoc-18603
Document Type: Working paper
Year of publication: 2007
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: O31 L13 D85 D21 ,
Subject headings (SWD): Innovationswettbewerb , Gebrauchsgut , Industrieforschung , Investition
Keywords (English): Network externalities , Durable Goods , Innovation, Imperfect Competition
Abstract: We develop a model of R&D competition between an incumbent and a potential entrant with network externalities and durable goods. We show that the threat of entry eliminates the commitment problem that an incumbent may face in its R&D decision due to the goods’ durability. Moreover, a potential entrant over-invests in R&D and an established incumbent might exhibit higher, equal or lower R&D investments in comparison with the social optimum. In our model, the incumbent’s commitment problem and the efficiency of its R&D level are determined by the extent of the network externalities.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Cerquera, Daniel (2007) Durable goods, innovation and network externalities. Open Access [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item