EconPapers    
Economics at your fingertips  
 

Competitive Diffusion

Boyan Jovanovic () and Glenn MacDonald ()

Journal of Political Economy, 1994, vol. 102, issue 1, 24-52

Abstract: This paper studies the evolution of a competitive industry in which a fixed number of firms reduce costs by innovating and by imitating their rivals' technologies. As the firms' technologies gradually improve, industry output expands and price falls. Technological leaders tend to rely on innovations to reduce their costs, whereas the laggards rely more on imitation. Imitation causes technology to spread from the leaders to the followers and forces some convergence of technology among firms as the industry matures. This convergence is accompanied by faster growth of smaller firms and a consequent tightening of the distribution of output over firms. Copyright 1994 by University of Chicago Press.

Date: 1994
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (138)

Downloads: (external link)
http://dx.doi.org/10.1086/261920 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.

Related works:
Working Paper: Competitive Diffusion (1993) Downloads
Working Paper: Competitive Diffusion (1991)
Working Paper: COMPETITIVE DIFFUSION (1988)
Working Paper: COMPETITIVE DIFFUSION (1988)
Working Paper: COMPETITIVE DIFFUSION (1988)
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:ucp:jpolec:v:102:y:1994:i:1:p:24-52

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2025-03-20
Handle: RePEc:ucp:jpolec:v:102:y:1994:i:1:p:24-52