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The Theory of Technological Competition

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New Developments in the Analysis of Market Structure

Part of the book series: International Economic Association Series ((volume 77))

Abstract

It is not self-evident that economists ought to engage in the task of explaining the characteristics of technological innovations. It is even less evident that development and inventive activities are related to the structure of economic organisations. Or so it would seem from the near-complete absence of a discussion of such issues in resource- allocation theory.2 So would it seem, as well, from the sheer volume of effort that has been spent over the past quarter of a century in trying to demonstrate that economic forces are a prime architect of technological change.3 If there is a single driving force behind these empirical investigations, it is the writings of Joseph Schumpeter (most especially perhaps his Capitalism, Socialism and Democracy, Schumpeter, 1976). Since recent developments in the theory of technological competition have addressed a few of the empirical findings, they reflect this heritage as well.

An earlier version of this paper was delivered as lectures at the Norwegian School of Economics and Business Administration, Bergen, and at the Stockholm School of Economics. My greatest debt is to Joseph Stiglitz with whom I have discussed and written on technological competition over several years. In writing this paper I have had the benefit of conversations with Vincent Crawford, Tracy Lewis, Jonathan Liebenau, Eric Maskin, Dilip Mookherjee, Barry Nalebuff, Jesus Seade and in particular the comments of John Vickers.

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Authors and Affiliations

  1. University of Cambridge, UK

    Partha Dasgupta

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  1. Partha Dasgupta
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Joseph E. Stiglitz G. Frank Mathewson

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© 1986 International Economic Association

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Dasgupta, P. (1986). The Theory of Technological Competition. In: Stiglitz, J.E., Mathewson, G.F. (eds) New Developments in the Analysis of Market Structure. International Economic Association Series, vol 77. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-18058-5_17

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