Competing Technologies and Lock-in by Random Events

Agliardi, Elettra (1991) Competing Technologies and Lock-in by Random Events. Bologna: Dipartimento di Scienze economiche DSE, p. 23. DOI 10.6092/unibo/amsacta/5260. In: Quaderni - Working Paper DSE (104). ISSN 2282-6483.
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Abstract

In this paper we study the choice of competing technologies with increasing returns occasioned by learning-by-doing and learning-by-using phenomena. We study under what circumstances one technology can achieve a monopoly and eventually take the whole market by formulating a firm's optimal decision problem, when both uncertainty and increasing returns to adoption are present, In contrast with Arthur (1989) we allow agente to learn: the formulation of the decision problem takes into account the revision of the probabilities on the future states of the adoption process, according to a version of the two-armed bandit problem.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Agliardi, Elettra0000-0001-9950-1152
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ISSN
2282-6483
DOI
Deposit date
01 Jul 2016 07:53
Last modified
01 Jul 2016 07:53
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