The effects of the market structure on the adoption of evolving technologies

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Abstract

We study the speed at which technologies are adopted depending on how the market power is shared between the firms that sell technologies and the firms that buy them. Our results suggest that, because of a double marginalization problem, adoption is fastest when either sellers or buyers hold all the market power. Thus, competition between sides of the market may delay the adoption of technologies
Original languageEnglish
Pages (from-to)2485-2493
Number of pages9
JournalJournal of Economic Dynamics and Control
Volume34
Issue number12
Early online date25 Jun 2010
DOIs
Publication statusPublished - Dec 2010

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