Title :
Commitment effect on social welfare in monopolist market
Author :
Niu, WenJie ; Tao, Lei
Author_Institution :
Mil. Economic Acad., Wuhan, China
Abstract :
This paper shows the effect of commitment from the monopolist on the social welfare. When monopolists can make commitment about his pattern of innovation, the innovation pace is slower than that where he can only react to consumers´ expectations, and the social welfare gets worse. Consider the frequency of introducing new products, contrary to Hoppe & Lee´s conclusions, the deterrence for entry could play a positive effect on social welfare.
Keywords :
customer satisfaction; innovation management; monopoly; public administration; Lee conclusion; commitment effect; consumer expectation; innovation pace; innovation pattern; monopolist market; social welfare; Biological system modeling; Central Processing Unit; Floods; Investments; Monopoly; Technological innovation; R&D; commitment; durable goods monopoly; entry deterrence;
Conference_Titel :
Management Science and Industrial Engineering (MSIE), 2011 International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-1-4244-8383-9
DOI :
10.1109/MSIE.2011.5707489
