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Timing of Technology Adoption and Product Market Competition

Chrysovalantou Milliou () and Emmanuel Petrakis ()

No 2686, CESifo Working Paper Series from CESifo

Abstract: This paper examines how product market competition affects firms’ timing of adopting a new technology as well as whether the market provides sufficient adoption incentives. It shows that adoption dates differ not only among symmetric firms but also among markets with Cournot and Bertrand competition. More specifically, Cournot competition can lead to earlier adoption than Bertrand competition. It shows also that competition toughness does not always reinforce adoption incentives. When goods are differentiated enough, adoption occurs later than it is socially optimal.

Keywords: technology adoption; innovation; diffusion; product differentiation (search for similar items in EconPapers)
JEL-codes: L13 O31 O32 O33 (search for similar items in EconPapers)
Date: 2009
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Journal Article: Timing of technology adoption and product market competition (2011) Downloads
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