Innovation in Durable-Goods Markets

Eirik Kristiansen

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: Anticipation of technological progress may induce potential buyers to delay adoption of a new product. We analyze how buyers' waiting option can alter firms' innovation strategies. It is shown that the firms' choice of innovation strategies relies on the possibility of selling products before they are invented or developed (i.e., pre-development contracts). In the absence of pre-development contracts, firms may speed up the development of new products or they may choose safer innovation strategies.

Keywords: INNOVATIONS; DURABLE GOODS; COMPETITION (search for similar items in EconPapers)
JEL-codes: L13 O31 (search for similar items in EconPapers)
Pages: 21 pages
Date: 1998
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:fth:norgee:9/98

Access Statistics for this paper

More papers in Working Papers from Norwegian School of Economics and Business Administration- NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().