Sequential technology adoption with asymmetric firms
We analyse the incentives and welfare implications of costly technology adoption in a two-period duopoly model where firms have different amounts of capital. We also extend our framework to an open economy set-up and examine the relationship between trade and technology adoption. Our findings are as...
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| Veröffentlicht in: | The journal of international trade & economic development 2006-06, Vol.15 (2), p.157-172 |
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| container_end_page | 172 |
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| container_title | The journal of international trade & economic development |
| container_volume | 15 |
| creator | Ghosh, Arghya Haque, Munirul Nabin |
| description | We analyse the incentives and welfare implications of costly technology adoption in a two-period duopoly model where firms have different amounts of capital. We also extend our framework to an open economy set-up and examine the relationship between trade and technology adoption. Our findings are as follows. First, no monotone relationship exists between the threshold cost of adoption and capital shares. Second, an unequal distribution of capital, despite lessening competition, can increase total surplus. Third, trade generally encourages adoption of modern technology unless the share of capital for the adopters is too low. |
| doi_str_mv | 10.1080/09638190600690838 |
| format | Article |
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| ispartof | The journal of international trade & economic development, 2006-06, Vol.15 (2), p.157-172 |
| issn | 0963-8199 1469-9559 |
| language | eng |
| recordid | cdi_proquest_journals_220287386 |
| source | RePEc; EBSCOhost Business Source Complete |
| subjects | Asymmetry Business economics Capital costs Cournot duopoly Duopoly Economic models Imperfect competition Studies surplus Technological change Technology Technology adoption Trade Trade surplus |
| title | Sequential technology adoption with asymmetric firms |
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