Competitive Pressure and the Adoption of Complementary Innovations
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONMetadata
Title
Competitive Pressure and the Adoption of Complementary InnovationsDate
2012-06Publisher
American Economic AssociationType
info:eu-repo/semantics/articleVersion
info:eu-repo/semantics/publishedVersionAbstract
Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, lead- ing to a substantial increase in competitive pressure among dealers. We ... [+]
Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, lead- ing to a substantial increase in competitive pressure among dealers. We estimate an equilibrium model of profit maximization to evaluate how dealers change their innovation adoption strategies following the elimination of exclusive territories. Using French data we evaluate the existence of complementarities between the adoption of software appli- cations and the scale of production. Firms view these innovations as substitutes and concentrate their effort in one type of software as they expand their scale of production. Results are robust to the existence of unobserved heterogeneity. (JEL: C35, L86, O31). [-]
Is part of
American Economic Review: Vol. 102 No. 4 (June 2012)Rights
http://rightsstatements.org/vocab/CNE/1.0/
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess
This item appears in the folowing collection(s)
- ECO_Articles [693]