Publications in Scientific Journals:
J. P. Caulkins, G. Feichtinger, D. Grass, R.F. Hartl, P.M. Kort:
"Two state capital accumulation with heterogenous products: disruptive vs. non-disruptive goods";
Journal of Economic Dynamics and Control,
35
(2011),
4;
462
- 478.
English abstract:
The paper considers the problem of a firm that, while producing a standard product, has the option to introduce an innovative product. The innovative product is qualitatively better than the standard product and will therefore reduce revenues of the standard product. A distinction is made between innovative products being disruptive or non-disruptive. It is shown that in the disruptive case history dependent long run equilibria can occur, which are well in line with recent real life economic examples.
Keywords:
Investment, Product innovation, Maximum principle, Skiba curve
"Official" electronic version of the publication (accessed through its Digital Object Identifier - DOI)
http://dx.doi.org/10.1016/j.jedc.2010.09.008
Created from the Publication Database of the Vienna University of Technology.