Monopolistic competition and the diffusion of new technology

This article analyzes the adoption and diffusion of new technology in a mar ket for a differentiated product with monopolistic competition, I show that in a noncooperative equilibrium ex ante identical firms adopt a new techno logy at different dates. This equilibrium can be described by a simple dist ribution function. For nonidentical firms, I state the conditions under whi ch a positive relationship between firm size and speed of adoption exists. The model integrates rank and stock effects, I demonstrate that increased c ompetition often promotes diffusion.