Competitive Pressure and the Adoption of Complementary Innovations
研究了2002年欧洲汽车分销系统自由化后，经销商在竞争压力增加时如何调整软件应用与生产规模之间的互补创新策略，发现两者实为替代关系。
Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, leading to a substantial increase in competitive pressure among dealers. We estimate an equilibrium model of profit maximization to evaluate how dealers change their innovation adoption strategies following the elimination of exclusive territories. Using French data we evaluate the existence of complementarities between the adoption of software applications and the scale of production. Firms view these innovations as substitutes and concentrate their effort in one type of software as they expand their scale of production. Results are robust to the existence of unobserved heterogeneity.