Lorenzo Burlon

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"Market Structure, Nonconvexities, and Equilibrium Bias of Technology"

First version: July 2008.

Last version: November 2011.

Abstract As a consequence of a technological change, the productivity of a factor may increase even when its supply increases. In this paper we analyze the determinants of this technological bias. We present a general equilibrium model, where a good is produced in the final sector using both a factor and a technology, and the technology is produced in the intermediate sector. We allow for different market structures in the intermediate sector, and we prove that both competition and a variable set of technology producers may affect the occurrence of the technological bias, since they affect the necessary nonconvexities in the equilibrium allocation.

Keywords Technological Bias; Market Structure; Nonconvexities.

SSRN working paper.


- II Doctoral Meeting of Montpellier, Université de Montpellier 1, May 2009.