NDLI: Market Integration and Technological Change

Content Provider	Springer Nature Link
Author	de Bijl, Paul W.J. Goyal, Sanjeev
Copyright Year	2002
Abstract	This paper studies the incentives of firms to introduce new technologies in markets where network effects are sensitive to the identity of the adopter. We model this sensitivity by considering a market in which consumers are located in two economies and network effects across economies are weaker than intra-economy network effects. The strength of cross economy network effects is measured by the degree of market integration. We show that the incentives for technological change are decreasing with respect to the degree of integration and that they are in excess of what is socially desirable. We also show that different generation technologies can coexist only if the market is poorly integrated and that this coexistence is characterized by a form of technological leap-frogging across economies.
Starting Page	19
Ending Page	37
Page Count	19
File Format	PDF
ISSN	13859587
Journal	NETNOMICS: Economic Research and Electronic Networking
Volume Number	4
Issue Number	1
e-ISSN	15737071
Language	English
Publisher	Kluwer Academic Publishers
Publisher Date	2002-01-01
Publisher Place	Boston
Access Restriction	Subscribed
Subject Keyword	Data Structures, Cryptology and Information Theory Economic Growth Economic Theory Business Information Systems
Content Type	Text
Resource Type	Article
Subject	Computer Networks and Communications Economics and Econometrics Information Systems

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