Price Setting and Rapid Technology Adoption: The Case of the PC Industry
研究了竞争和上游创新如何影响下游企业的利润最大化策略，利用个人电脑行业数据揭示了价格快速下降和产品短生命周期现象，并构建了模型来解释这些事实。
We examine how the confluence of competition and upstream innovation influences downstream firms’ profit-maximizing strategies. We focus on personal computers and use two novel data sets to describe the dramatic fall in both price (27% at an annual rate) and sales of a computer over its product cycle. Further, we document that computers are typically sold for only four months before being replaced by a higher-quality product. To explain these facts, we develop and calibrate a vintage capital model that combines a competitive market structure with an exogenous rapid rate of innovation.