Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9555850 | Journal of Economic Dynamics and Control | 2005 | 32 Pages |
Abstract
Consider a setting in which firms randomly discover new ideas that affect their products or services and implement favorable ones. At the same time that firms are adapting their offerings, consumers are searching among firms for the best match. It is shown that implicit in these dual dynamics is an increasing returns mechanism which can result in one firm dominating the market in the long run. The conditions under which there is sustained market dominance are characterized.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Joseph E. Jr., Myong-Hun Chang,