Heterogeneous consumers, vertical product differentiation and the rate of innovation

Arbeitspapier

This paper studies the impact of income inequality on the level of innovative activities in a model where innovations result in quality improvements. The market for quality goods is characterized by a natural oligopoly with three types of consumers - rich, middle class and poor. In general, we find that for reasons of strategic price setting a more equal distribution of income is favourable for innovation incentives. This is consistent with empirical evidence suggesting that countries with a more equal distribution of income have grown faster.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Reihe Ökonomie / Economics Series ; No. 32

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Innovation and Invention: Processes and Incentives ; Information and Product Quality; Standardization and Compatibility ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
• Thema: inequality ; income distribution ; heterogeneity ; innovation ; endogeneous growth ; product quality ; vertical product differentiation ; Konsumentenverhalten ; Produktdifferenzierung ; Innovation ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Zweimüller, Josef ; Brunner, Johannes K.
• Ereignis: Veröffentlichung
• (wer): Institute for Advanced Studies (IHS)
• (wo): Vienna
• (wann): 1996

Weitere Informationen

• Handle: http://hdl.handle.net/10419/68654
• Letzte Aktualisierung: 20.09.2024, 08:23 MESZ