全球智库信息集成服务系统(G2TT): DP3980 The BMW Model: Simple Macroeconomics for Closed and Open Economies - A Requiem for the IS/LM-AS/AD and the Mundell-Fleming Model

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP3980
	DP3980 The BMW Model: Simple Macroeconomics for Closed and Open Economies - A Requiem for the IS/LM-AS/AD and the Mundell-Fleming Model
	Peter Bofinger; Timo Wollmershaeuser; Eric Mayer
发表日期	2003-07-23
出版年	2003
语种	英语
摘要	We formalize the phenomenon of disruptive technologies (Christensen, 1997) that initially serve isolated market niches and, as they mature, expand to displace established technologies from mainstream segments. Using a model of horizontal and vertical differentiation with discrete customer segmentation, we show how the threat of disruption varies with the rate of technological advance, the number of firms using each technology, segments sizes, marginal costs, and the ability of firms to price discriminate. We characterize the effect of disruption on prices, market shares, social welfare and innovation incentives. We show that a shift from isolation to disruption lowers prices and increases social welfare, but may either increase or decrease the profits of firms using the new technology. By identifying the drivers and implications of technology competition, we contribute to debates about market definition that are often central in anti-trust deliberations. Moreover, we call into question standard results on the effects of mergers in Cournot models. Prior work finds that, absent efficiency gains, mergers among Cournot competitors lower welfare and are only profitable for the merging firms at high levels of concentration. We show that neither of these results need hold when mergers can alter the boundaries of technology competition.
主题	Industrial Organization
关键词	Threat of substitutes Market definition Mergers
URL	https://cepr.org/publications/dp3980
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/532959
推荐引用方式 GB/T 7714	Peter Bofinger,Timo Wollmershaeuser,Eric Mayer. DP3980 The BMW Model: Simple Macroeconomics for Closed and Open Economies - A Requiem for the IS/LM-AS/AD and the Mundell-Fleming Model. 2003.