Market Structure,Competition, and Welfare Change Due to Technological Innovations |
| |
Authors: | Hyung Bae |
| |
Affiliation: | Sang Myung Women's University |
| |
Abstract: | This paper analyzes the change in social welfare brought about by a cost-reducing technological innovation. Each firm adopts a new technology at the expense of the other firms. Hence, competitive adoption of new technology can reduce social welfare. Because a technological innovation can change market structure in different ways under different kinds of competition it can cause quantity competition to generate greater social welfare than price competition does. [020] |
| |
Keywords: | |
|
|