Affiliation:
1. School of Economics and Management Shanxi Normal University Taiyuan China
2. Antai College of Economics and Management Shanghai Jiao Tong University Shanghai China
Abstract
AbstractThis paper examines a monopolist's innovation efforts for improving product quality and process innovation with reference price effects. Our main results show that the system can achieve saddle‐point steady‐state equilibrium; the two efforts increase with the increase of reference price; although the price is still determined by the monopolist, the price under the social planner regulation is higher than that under the monopolist decision‐making; there is always a negative relationship between the product quality and the price; and memory parameter affects the complementarity (substitutability) relationship between these two efforts.
Funder
National Social Science Fund of China
Subject
Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management,Business and International Management