Monopolistic Competition and New Products: A Conjectural Equilibrium Approach

Bogliacino, F and Rampa, G (2009): Monopolistic Competition and New Products: A Conjectural Equilibrium Approach.

Abstract

In this paper we generalize the heterogeneous risk adverse agents model of diffusion of new products in a multi-firm, heterogeneous and interacting agents environment. We use a model of choice under uncertainty based on Bayesian theory. We discuss the possibility of product failures, the set of equilibria, their stability and some welfare properties.

• Item Type: MPRA Paper
• Language: English
• Keywords: Product diffusion, Risk aversion, Lock-in, Monopolistic competition, Multiple equilibria
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences; Diffusion Processes; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L15 - Information and Product Quality; Standardization and Compatibility

References

L15, D81, O33