[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/bla/jindec/v40y1992i2p173-80.html
   My bibliography  Save this article

Innovation Adoption and Welfare under Uncertainty

Author

Listed:
  • Jensen, Richard
Abstract
The incentives of firms to adopt a new process need not coincide with maximum expected consumer surplus or social welfare if there is uncertainty before the process is adopted and if the only loss from failure is a fixed cost. In some cases, no firm will adopt an innovation likely to fail, although expected welfare is maximized if one adopts. In other cases, both firms will adopt an innovation likely to succeed, although expected welfare is maximized if one firm adopts. This occurs because rivalry between firms leads them to adopt together when total expected profits are higher if one firm adopts. Copyright 1992 by Blackwell Publishing Ltd.

Suggested Citation

  • Jensen, Richard, 1992. "Innovation Adoption and Welfare under Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 173-180, June.
  • Handle: RePEc:bla:jindec:v:40:y:1992:i:2:p:173-80
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1821%28199206%2940%3A2%3C173%3AIAAWUU%3E2.0.CO%3B2-%23&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amihai Glazer, 2008. "Bargaining with Rent Seekers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(5), pages 859-871, October.
    2. Coria, Jessica, 2009. "Taxes, permits, and the diffusion of a new technology," Resource and Energy Economics, Elsevier, vol. 31(4), pages 249-271, November.
    3. Yanfang Zhang & Shue Mei & Weijun Zhong, 2014. "New technology adoption in a Cournot oligopoly with spillovers," Journal of Economics, Springer, vol. 112(2), pages 115-136, June.
    4. Pal, Rupayan, 2010. "Technology adoption in a differentiated duopoly: Cournot versus Bertrand," Research in Economics, Elsevier, vol. 64(2), pages 128-136, June.
    5. Mariana Cunha & Paula Sarmento & Hélder Vasconcelos, 2014. "Uncertain Efficiency Gains and Merger Policy," FEP Working Papers 527, Universidade do Porto, Faculdade de Economia do Porto.
    6. Arghya Ghosh & Munirul Nabin Haque, 2006. "Sequential technology adoption with asymmetric firms," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(2), pages 157-172.
    7. Jacco Thijssen & Kuno Huisman & Peter Kort, 2006. "The effects of information on strategic investment and welfare," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(2), pages 399-424, June.
    8. Allen Blackman & James Boyd, 2002. "Tailored Regulation: Will Voluntary Site‐Specific Environmental Performance Standards Improve Welfare?," Southern Economic Journal, John Wiley & Sons, vol. 69(2), pages 309-326, October.
    9. Krishnendu Ghosh Dastidar, 2015. "Nature of Competition and New Technology Adoption," Pacific Economic Review, Wiley Blackwell, vol. 20(5), pages 696-732, December.
    10. John C. Strandholm, 2020. "Promotion of Green Technology under Different Environmental Policies," Games, MDPI, vol. 11(3), pages 1-23, August.
    11. Miller, David A., 2008. "Invention under uncertainty and the threat of ex post entry," European Economic Review, Elsevier, vol. 52(3), pages 387-412, April.
    12. Zhang, Yanfang, 2020. "When should firms choose a risky new technology? An oligopolistic analysis," Economic Modelling, Elsevier, vol. 91(C), pages 687-693.
    13. Hoppe, Heidrun C., 2000. "Second-mover advantages in the strategic adoption of new technology under uncertainty," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 315-338, February.
    14. raies, asma, 2006. "The impacts of technological change, industry structure and Plant entry/exit on industry efficiency growth," MPRA Paper 9546, University Library of Munich, Germany.
    15. Thijssen, J.J.J., 2003. "Investment under uncertainty, market evolution and coalition spillovers in a game theoretic perspective," Other publications TiSEM 672073a6-492e-4621-8d4a-0, Tilburg University, School of Economics and Management.
    16. Dilaver, Özge, 2014. "Involuntary technology adoptions: How consumer interdependencies lead to societal change," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 138-148.
    17. Asma Raies, 2004. "Innovation, learning and productivity improvement in developing countries: a dynamic model of technological adoption and industry evolution," Cahiers de la Maison des Sciences Economiques bla04112, Université Panthéon-Sorbonne (Paris 1).
    18. Lyon, Thomas P. & Huang, Haizhou, 1997. "Innovation and imitation in an asymmetrically-regulated industry," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 29-50, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:40:y:1992:i:2:p:173-80. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.