Poudou, Jean-Christophe - In: Recherches économiques de Louvain 73 (2007) 1, pp. 55-75
Considering a cost reducing innovation, Arrow (1962) shows that a firm in monopoly suffers the replacement effect, that is, its valuation of the innovation is sub-optimal and less than in a context of technological competition. We look also at this problem but within the framework of an economy...
