Markov-perfect industrial dynamics with technological path dependence

Fernando Vega-Redondo

Spanish Economic Review, 1999, vol. 1, issue 1, 21-54

Abstract: A game-theoretic intertemporal model of industrial competition is proposed where firms choose their optimal technological strategies as part of some (Markov Perfect) equilibrium with potential entry and exit. The main novel feature of the approach is that technological change is modelled along a directed graph of technologies, which permits a rigorous consideration of key issues such as technological gaps, switching costs and gradual innovation. The paper provides some sufficient conditions for existence and ergodicity of the equilibrium, partially studies the induced population dynamics, and explores a number of other issues by means of numerical simulations.

Keywords: Industrial dynamics; technological change; path-dependence (search for similar items in EconPapers)
JEL-codes: C73 L10 O31 (search for similar items in EconPapers)
Date: 1999-03-10
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.de/link/service/journals/10108/papers/9001001/90010021.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
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:spr:specre:v:1:y:1999:i:1:p:21-54

Ordering information: This journal article can be ordered from
http://www.springer. ... etailsPage=societies

Access Statistics for this article

Spanish Economic Review is currently edited by Eduardo Ley

More articles in Spanish Economic Review from Springer, Spanish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().