You can manage bookmarks using lists, please log in to your user account for this.
Media type:
Report;
E-Book
Title:
Adverse selection among early adopters and unraveling innovation
Contributor:
McGee, Rory
[Author]
imprint:
London (Ontario): The University of Western Ontario, Centre for Human Capital and Productivity (CHCP), 2023
Language:
English
Origination:
Footnote:
Diese Datenquelle enthält auch Bestandsnachweise, die nicht zu einem Volltext führen.
Description:
I provide an equilibrium analysis of "selection markets": where consumers not only vary in how much they are willing to pay, but also in how much they cost to the seller. The model provides a joint explanation for three empirical phenomena: low uptake of existing products, slow demand for new products, and market inactivity despite unmet demand. I characterize when early adopters are more adversely selected in new markets. This lowers demand, increases costs, and leads markets to unravel prematurely. With endogenous market entry for new products (e.g., reverse mortgages, annuities), extended patents serve as de facto time-varying subsidies.