Oligopoly and Technical Progress

Introduction

In his book "Oligopoly and Technical Progress," economist John Sutton examines the relationship between market structure and technological change. He argues that the structure of an industry, particularly the number and size of firms, can have a significant impact on the rate and direction of technological progress.

Key Findings

Sutton's research finds that oligopolistic industries, which are characterized by a small number of large firms, are more likely to engage in research and development (R&D) than industries with many small firms. This is because large firms have the resources to invest in R&D, and they also have the incentive to do so in order to gain a competitive advantage over their rivals.

Sutton also finds that oligopolistic industries are more likely to adopt new technologies than industries with many small firms. This is because large firms are more likely to have the financial resources and the organizational capabilities to adopt new technologies.

Implications for Policy

Sutton's findings have important implications for policymakers. They suggest that policies that promote competition, such as antitrust laws, can also promote technological progress. This is because competition forces firms to innovate in order to stay ahead of their rivals.

Conclusion

"Oligopoly and Technical Progress" is a valuable resource for economists, policymakers, and anyone else interested in the relationship between market structure and technological change. Sutton's research provides a wealth of evidence that oligopolistic industries are more likely to engage in R&D and adopt new technologies than industries with many small firms. This has important implications for policymakers who are interested in promoting technological progress.

Why You Should Read This Book

If you are interested in the relationship between market structure and technological change, then "Oligopoly and Technical Progress" is a must-read. Sutton's research is rigorous and well-documented, and his findings have important implications for policymakers. This book is a valuable resource for anyone who wants to understand how market structure affects technological progress.

How to Buy This Book

"Oligopoly and Technical Progress" is available for purchase from a variety of online retailers, including Amazon, Barnes & Noble, and Google Play. You can also find it in libraries.