Incomplete Adoption of a Superior Innovation

Harvey Lapan and GianCarlo Moschini

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: We consider a model in which an innovating monopolist of a technologically superior intermediate input must sell this product to final output producers. Prior research shows that, with complete information, the monopolist's optimal strategy will lead to complete adoption of this technologically superior innovation. In this paper we show that, when the price of some competitively supplied input used in the final product market is endogenous and is altered by adoption of the innovation, then the optimal pricing strategy of the monopolist may lead to incomplete innovation. Thus, the conclusion of complete adoption of the superior technology is partly attributable to the partial equilibrium nature of prior models.

Date: 1999-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... f006ee6b4d38/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Journal Article: Incomplete Adoption of a Superior Innovation (2000)
Working Paper: Incomplete Adoption of a Superior Innovation (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:199908010700001324

Access Statistics for this paper

More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().