New technology adoption in duopoly driven by profit maximization strategies.
This article analyzes how companies decide to adopt new technology in a competitive market. They look at two ways companies can make profits: by focusing on their own profits only or by comparing their profits to their competitor's. The researchers found that under the first approach, some companies adopt the new technology while others don't, depending on the cost involved. However, under the second approach, it's more likely that both companies will adopt the new technology if the demand is high.