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Abstract: This paper investigates the efficiency of innovation investments in a durable-goods
monopoly when a potential entrant threatens to innovate as well. We show that the durability
of the good endows the monopolist with the power to discourage rival innovation since
current sales alter the demand for a new generation of the good. The equilibrium is therefore
determined not only by competitive pressure due to time inconsistency, but also by the
incumbent's concern for maintaining the technological... (Update)
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BibTeX entry: (Update)
@misc{ hoppe-entry,
author = "Heidrun C. Hoppe",
title = "Entry Deterrence and Innovation in Durable-Goods Monopoly",
url = "citeseer.ist.psu.edu/hoppe00entry.html" }
Citations (may not include all citations):
21
Endogenous Growth Theory (context) - Aghion, Howitt - 1998
19
Economic welfare and the allocation of resources for inventi.. (context) - Arrow - 1962
19
Monopoly and product quality (context) - Mussa, Rosen - 1978
15
Product Introduction with Network Externalities (context) - Katz, Shapiro - 1992
12
Durability and monopoly (context) - Coase - 1972
10
Market Structure and Innovation (context) - Kamien, Schwartz - 1982
10
Barriers to technology adoption and development (context) - Parente, Prescott - 1994
7
and Democracy (context) - Schumpeter - 1942
6
Limit pricing and entry under incomplete information: An equ.. (context) - Milgrom, Roberts - 1982
5
Durable goods monopolists (context) - Bulow - 1982
4
A Note on pricing in monopoly and oligopoly (context) - Bain - 1949
4
Preemptive patenting and the persistence of monopoly (context) - Gilbert, Newbery - 1982
3
An economic theory of planned obsolescence (context) - Bulow - 1986
3
Noncooperative collusion in durable goods oligopoly (context) - Gul - 1987
3
Uncertain innovation and the persistence of monopoly (context) - Reinganum - 1983
[Article contains additional citations not shown here]
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