Arbeitspapier
Adverse selection among early adopters and unraveling innovation
I provide an equilibrium analysis of "selection markets": where consumers not only vary in how much they are willing to pay, but also in how much they cost to the seller. The model provides a joint explanation for three empirical phenomena: low uptake of existing products, slow demand for new products, and market inactivity despite unmet demand. I characterize when early adopters are more adversely selected in new markets. This lowers demand, increases costs, and leads markets to unravel prematurely. With endogenous market entry for new products (e.g., reverse mortgages, annuities), extended patents serve as de facto time-varying subsidies.
- Sprache
-
Englisch
- Erschienen in
-
Series: CHCP Working Paper ; No. 2023-02
- Klassifikation
-
Wirtschaft
- Ereignis
-
Geistige Schöpfung
- (wer)
-
McGee, Rory
- Ereignis
-
Veröffentlichung
- (wer)
-
The University of Western Ontario, Centre for Human Capital and Productivity (CHCP)
- (wo)
-
London (Ontario)
- (wann)
-
2023
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- McGee, Rory
- The University of Western Ontario, Centre for Human Capital and Productivity (CHCP)
Entstanden
- 2023
Ähnliche Objekte (12)
Adverse selection and unraveling in common-value labor markets
Adverse selection and incentives in an early retirement program
Adverse Selection and Incentives in an Early Retirement Program
Unraveling the medical residency selection game
Adverse selection in tontines
Simultaneous search and adverse selection
Simultaneous Search and Adverse Selection
Efficiency, Adverse Selection, and Production
Dynamic Insurance and Adverse Selection
Nonexclusive competition under adverse selection
Information Aggregation and Adverse Selection
Optimal insurance with adverse selection
Adverse selection and unraveling in common-value labor markets
Adverse selection and incentives in an early retirement program
Adverse Selection and Incentives in an Early Retirement Program
Unraveling the medical residency selection game
Adverse selection in tontines
Simultaneous search and adverse selection
Simultaneous Search and Adverse Selection
Efficiency, Adverse Selection, and Production
Dynamic Insurance and Adverse Selection
Nonexclusive competition under adverse selection
Information Aggregation and Adverse Selection
Optimal insurance with adverse selection
Adverse selection and unraveling in common-value labor markets
Adverse selection and incentives in an early retirement program
Adverse Selection and Incentives in an Early Retirement Program
Unraveling the medical residency selection game
Adverse selection in tontines
Simultaneous search and adverse selection
Simultaneous Search and Adverse Selection
Efficiency, Adverse Selection, and Production
Dynamic Insurance and Adverse Selection
Nonexclusive competition under adverse selection
Information Aggregation and Adverse Selection