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Title: |
Market Structure, Competition, and Welfare
Change Due to Technological Innovations |
| Author: |
Bae, Hyung |
| Author
Affiliation: |
Sang Myung
Women's U |
| Source: |
International Economic Journal, Spring 1987, v. 1, no. 1, pp. 67-74 |
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Publication Date: |
Spring 1987 |
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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 technolgy 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. |
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