Markov-perfect industrial dynamics with technological path dependence |
| |
Authors: | Fernando Vega-Redondo |
| |
Institution: | (1) Facultad de Economicas, Instituto Valenciano de Investigaciones Economicas, Universidad de Alicante, E-03071 Alicante, Spain , ES |
| |
Abstract: | A game-theoretic intertemporal model of industrial competition is proposed where firms choose their optimal technological
strategies as part of some (Markov Perfect) equilibrium with potential entry and exit. The main novel feature of the approach
is that technological change is modelled along a directed graph of technologies, which permits a rigorous consideration of
key issues such as technological gaps, switching costs and gradual innovation. The paper provides some sufficient conditions
for existence and ergodicity of the equilibrium, partially studies the induced population dynamics, and explores a number
of other issues by means of numerical simulations. |
| |
Keywords: | JEL classification: C73 L10 O31 |
本文献已被 SpringerLink 等数据库收录! |
|