"Market Structure, Nonconvexities, and Equilibrium Bias of Technology"
First version: July 2008.
Last version: November 2011.
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.
Technological Bias; Market Structure; Nonconvexities.
SSRN working paper.
- II Doctoral Meeting of Montpellier, Université de Montpellier 1, May 2009.