Yıl 2013, Cilt 1 , Sayı 1, Sayfalar 39 - 50 2016-07-23

Innovative Products, Prisoner Dilemma and an Increasing CostComponent for the Firms in the New Economy

Arzdar Kiracı [1]

Technological developments in information and communication sectors combined with globalization has started a transformation process and a new economy. New Economy firms that produce new technologies encourage the use of their products by stressing the economic advantage of their products and the advantage of early adopting their products in this transformation process. In addition, New Economy firms remind that the ones who predict the direction of this transformation and successfully adopt themselves to the new environment become stronger and the continuous change in the new environment is eliminating the institutions resisting to the change before they are able to observe the consequence of these changes. This is a marketing strategy. This paper investigates this marketing strategy and the behavior of adopting firms by constructing a game theoretic model. One of the interesting results is that if the parameters of the game are suitable then adopting an innovative product is a strictly dominant strategy and this results in a prisoner dilemma. Adopting an innovative product is a gain in the first stage but at the end makes the adopter worse off.
Cost Structure, Firm Decision, Game Theory, Globalization, New Economy
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Diğer ID JA57PC69KZ
Bölüm Makaleler

Yazar: Arzdar Kiracı


Başvuru Tarihi : 23 Temmuz 2016
Kabul Tarihi : 28 Eylül 2020
Yayımlanma Tarihi : 23 Temmuz 2016

APA Kiracı, A . (2016). Innovative Products, Prisoner Dilemma and an Increasing CostComponent for the Firms in the New Economy . İktisadi Yenilik Dergisi , 1 (1) , 39-50 . Retrieved from https://dergipark.org.tr/tr/pub/iy/issue/22651/241940