Sequential technology adoption with asymmetric firms

Ghosh, Arghya and Nabin, Munirul 2006, Sequential technology adoption with asymmetric firms, Journal of international trade and economic development, vol. 15, no. 2, pp. 157-172, doi: 10.1080/09638190600690838.

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Title Sequential technology adoption with asymmetric firms
Author(s) Ghosh, Arghya
Nabin, MunirulORCID iD for Nabin, Munirul
Journal name Journal of international trade and economic development
Volume number 15
Issue number 2
Start page 157
End page 172
Publisher Routledge
Place of publication London, England
Publication date 2006-06
ISSN 0963-8199
Keyword(s) asymmetry
cournot duopoly
technology adoption
Summary We analyse the incentives and welfare implications of costly technology adoption in a two-period duopoly model where firms have different amounts of capital. We also extend our framework to an open economy set-up and examine the relationship between trade and technology adoption. Our findings are as follows. First, no monotone relationship exists between the threshold cost of adoption and capital shares. Second, an unequal distribution of capital, despite lessening competition, can increase total surplus. Third, trade generally encourages adoption of modern technology unless the share of capital for the adopters is too low.
Language eng
DOI 10.1080/09638190600690838
Field of Research 140209 Industry Economics and Industrial Organisation
Socio Economic Objective 970114 Expanding Knowledge in Economics
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2006, Taylor & Francis
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Document type: Journal Article
Collections: Faculty of Business and Law
Deakin Business School
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