Publication
Title
Two state capital accumulation with heterogenous products : disruptive vs. non-disruptive goods
Author
Abstract
The paper considers the problem of a firm that, while producing a standard product, has the option to introduce an innovative product. The innovative product competes with the standard product and will therefore reduce revenues of the standard product. A distinction is made between innovative products that do or do not become even more relatively appealing as their market share grows (e.g., because of network externalities). It is shown that in the former case, which we call a disruptive good, history dependent long run equilibria can occur, which are in line with recent real life economic examples.
Language
English
Source (journal)
Journal of economic dynamics and control. - Amsterdam
Publication
Amsterdam : 2011
ISSN
0165-1889
Volume/pages
35:4(2011), p. 462-478
ISI
000287566400004
Full text (Publisher's DOI)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 18.06.2011
Last edited 07.08.2017
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