Monopolies Accelerate Adoption of Cost-Saving Technologies, Benefiting Consumers
The article explores how the timing of adopting new technology in markets where suppliers are either monopolies or separate can impact the downstream market. When there's an upstream monopoly, downstream technology adoption happens earlier compared to when there are separate suppliers. This means that a monopoly supplier can speed up technology adoption in the market below. The findings are not tied to specific market features, like how trading contracts are set up or the way competition occurs downstream. In simple terms, having one big supplier upstream can push for faster tech changes downstream.