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Punctuated Equilibrium Theory and the Diffusion of Innovations

✍ Scribed by Graeme Boushey


Book ID
109223269
Publisher
John Wiley and Sons
Year
2012
Tongue
English
Weight
352 KB
Volume
40
Category
Article
ISSN
0190-292X

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In this paper, we solve the problem of optimal control of products diffusion by quality in a context of monopolistic competition. To do so, we introduce a dynamic demand function leaning on two hypotheses: first, price acts a signal of quality; second, demand is more sensitive to quality than to pri