Firm routines,customer switching and market selection under duopoly |
| |
Authors: | Martin Currie Stan Metcalfe |
| |
Institution: | (1) School of Economic Studies and ESRC Centre for Research on Innovation and Competition, Victoria University of Manchester, Manchester M13 9PL, UK , GB |
| |
Abstract: | This paper explores the dynamics of market selection for an industry in which firms employ relatively simple pricing, production
and investment routines and in which consumers switch between rival firms in response to price differentials but do not all
do so instantaneously. The key issue is whether market processes result in the elimination of less efficient firms by their
more efficient rivals. That is to say, do such processes unfailingly increase the efficiency with which available economic
resources are used? In the context of duopoly, we show that the survival of the more efficient firm is not guaranteed and
that, more generally, the outcome depends upon the speeds with which firms adjust prices and capacities and with which customers
switch between rival firms. |
| |
Keywords: | : Non-linear dynamics – Firm adjustment routines – Market selection |
本文献已被 SpringerLink 等数据库收录! |
|