IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v18y2009i1p93-106.html
   My bibliography  Save this article

Price competition in the presence of rapid innovation and imitation: the case of digital cameras

Author

Listed:
  • S. Thompson

Abstract

High-tech rivalry typically involves sellers introducing a sequence of models each offering greater capacity/functionality. Given heterogeneous consumers this both creates and erodes any quality/novelty premium as innovation segments the market and imitation then populates the segments so created. We present a hedonic price analysis using a unique US digital camera database. This confirms the intensity of the quality-adjusted price fall and the dominance of vertical differentiation and identifies a premium for frontier models.

Suggested Citation

  • S. Thompson, 2009. "Price competition in the presence of rapid innovation and imitation: the case of digital cameras," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(1), pages 93-106.
  • Handle: RePEc:taf:ecinnt:v:18:y:2009:i:1:p:93-106
    DOI: 10.1080/10438590701672165
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590701672165
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/10438590701672165?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David S. Evans & Andrei Hagiu & Richard Schmalensee, 2008. "Invisible Engines: How Software Platforms Drive Innovation and Transform Industries," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550687, April.
    2. Geroski, Paul, 2003. "The Evolution of New Markets," OUP Catalogue, Oxford University Press, number 9780199248896.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zheng, Wei & Li, Bo & Song, Dongping & Li, Yanran, 2023. "Innovative development strategy of a risk-averse firm considering product unreliability under competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kevin J. Boudreau & Andrei Hagiu, 2009. "Platform Rules: Multi-Sided Platforms as Regulators," Chapters, in: Annabelle Gawer (ed.), Platforms, Markets and Innovation, chapter 7, Edward Elgar Publishing.
    2. Claire M. Weiller & Michael G. Pollitt, 2013. "Platform markets and energy services," Working Papers EPRG 1334, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Gauguier, Jean-Jacques, 2009. "L’industrialisation de l’Open Source," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/4388 edited by Toledano, Joëlle.
    4. Yannis Bakos & Hanna Halaburda, 2022. "Overcoming the Coordination Problem in New Marketplaces via Cryptographic Tokens," Information Systems Research, INFORMS, vol. 33(4), pages 1368-1385, December.
    5. Möllering, Guido, 2009. "Market constitution analysis: A new framework applied to solar power technology markets," MPIfG Working Paper 09/7, Max Planck Institute for the Study of Societies.
    6. Vincenzo Vignieri, 2021. "Crowdsourcing as a mode of open innovation: Exploring drivers of success of a multisided platform through system dynamics modelling," Systems Research and Behavioral Science, Wiley Blackwell, vol. 38(1), pages 108-124, January.
    7. Rahul Basole & Jürgen Karla, 2011. "On the Evolution of Mobile Platform Ecosystem Structure and Strategy," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(5), pages 313-322, October.
    8. Anoop R. Menon & Dennis A. Yao, 2017. "Elevating Repositioning Costs: Strategy Dynamics and Competitive Interactions," Strategic Management Journal, Wiley Blackwell, vol. 38(10), pages 1953-1963, October.
    9. Mendonça, Sandro & Damásio, Bruno & Charlita de Freitas, Luciano & Oliveira, Luís & Cichy, Marcin & Nicita, António, 2022. "The rise of 5G technologies and systems: A quantitative analysis of knowledge production," Telecommunications Policy, Elsevier, vol. 46(4).
    10. Nair, Sujith & Paulose, Hanna, 2014. "Emergence of green business models: The case of algae biofuel for aviation," Energy Policy, Elsevier, vol. 65(C), pages 175-184.
    11. Guido Möllering, 2010. "Kartelle, Konsortien, Kooperationen und die Entstehung neuer Märkte," Schmalenbach Journal of Business Research, Springer, vol. 62(7), pages 770-796, November.
    12. Michael Böheim, 2010. "Wettbewerbspolitik nach der Wirtschaftskrise," WIFO Monatsberichte (monthly reports), WIFO, vol. 83(10), pages 831-846, October.
    13. Shum, Kwok L. & Watanabe, Chihiro, 2009. "An innovation management approach for renewable energy deployment--the case of solar photovoltaic (PV) technology," Energy Policy, Elsevier, vol. 37(9), pages 3535-3544, September.
    14. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    15. Nieto-Carrillo, Ernesto & Carreira, Carlos & Teixeira, Paulino, 2024. "Industrial dynamics in the ICT technological paradigm: The case of Portugal, 1986–2018," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 155-170.
    16. Greenstein Shane, 2012. "Concentration in Internet Access and Entrepreneurial Truncation of Innovation," Capitalism and Society, De Gruyter, vol. 7(1), pages 1-33, November.
    17. Michael Böheim, 2010. "Competition Policy in the Wake of the Economic Crisis," Austrian Economic Quarterly, WIFO, vol. 15(4), pages 349-363, December.
    18. Enzo Bivona & Federico Cosenz, 2021. "Designing a Multi‐Sided Platform business model assessment framework: a Dynamic Performance Management perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 38(1), pages 93-107, January.
    19. Cassetta, Ernesto & Marra, Alessandro & Pozzi, Cesare & Antonelli, Paola, 2017. "Emerging technological trajectories and new mobility solutions. A large-scale investigation on transport-related innovative start-ups and implications for policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 1-11.
    20. Abrar Chaudhury, 2020. "Role of Intermediaries in Shaping Climate Finance in Developing Countries—Lessons from the Green Climate Fund," Sustainability, MDPI, vol. 12(14), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:18:y:2009:i:1:p:93-106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.