The Role of Consumers in Innovation Processes in Markets

Nicole J. Saam
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Nicole J. Saam: nicole.saam@soziologie.uni-muenchen.de

Rationality and Society, 2005, vol. 17, issue 3, 343-380

Abstract: What is the effect of the fallible knowledge of consumers on knowledge accumulation in markets? This is the question which this article investigates based on Hayek’s evolutionary concept of competition as a discovery procedure and of Popper’s concept of fallible knowledge. The article presents results from a simulation model. It tests the hypothesis that the growth rate of knowledge accumulation of an industry should decrease with the increase in fallible knowledge of consumers. Surprisingly, under certain conditions, the growth rate of knowledge accumulation of an industry increases with the increase in fallible knowledge of consumers.

Keywords: evolutionary model; fallible knowledge; Hayek; imitation; innovation; knowledge; Popper (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ratsoc:v:17:y:2005:i:3:p:343-380

DOI: 10.1177/1043463105055465

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