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  • LancasterWP2022_004

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Of Shrimp and Men: Innovation, Competition and Product Diversity

Research output: Working paper

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Of Shrimp and Men: Innovation, Competition and Product Diversity. / De Pirro, Amanda; Foucart, Renaud.
Lancaster: Lancaster University, Department of Economics, 2022. (Economics Working Papers Series; Vol. 2022/004).

Research output: Working paper

Harvard

De Pirro, A & Foucart, R 2022 'Of Shrimp and Men: Innovation, Competition and Product Diversity' Economics Working Papers Series, vol. 2022/004, Lancaster University, Department of Economics, Lancaster.

APA

De Pirro, A., & Foucart, R. (2022). Of Shrimp and Men: Innovation, Competition and Product Diversity. (Economics Working Papers Series; Vol. 2022/004). Lancaster University, Department of Economics.

Vancouver

De Pirro A, Foucart R. Of Shrimp and Men: Innovation, Competition and Product Diversity. Lancaster: Lancaster University, Department of Economics. 2022 Mar 23. (Economics Working Papers Series).

Author

De Pirro, Amanda ; Foucart, Renaud. / Of Shrimp and Men : Innovation, Competition and Product Diversity. Lancaster : Lancaster University, Department of Economics, 2022. (Economics Working Papers Series).

Bibtex

@techreport{94e610bf9ec5496cbffe783ecfbc89f8,
title = "Of Shrimp and Men: Innovation, Competition and Product Diversity",
abstract = "Building on a model of competition with endogenous product differentiationand using data from the shrimp aquaculture industry, we show how a cost-reducing innovation can hurt the profit of the innovator by decreasing product diversity and strengthening competition. In the late 1990s, a US governmental program designed a new pathogen-free breed reducing the production cost of white legs shrimp. This innovation gave a temporary boost to the profit of American producers, largely specialized in that variety. However, over time other countries abandoned their native production to adopt the new breed. In this phase of technological catch-up US producers thus not only lost their cost advantage, but also the market power derived from the pre-innovation product differentiation.",
keywords = "innovation, cost paradox, product differentiation, shrimp",
author = "{De Pirro}, Amanda and Renaud Foucart",
year = "2022",
month = mar,
day = "23",
language = "English",
series = "Economics Working Papers Series",
publisher = "Lancaster University, Department of Economics",
type = "WorkingPaper",
institution = "Lancaster University, Department of Economics",

}

RIS

TY - UNPB

T1 - Of Shrimp and Men

T2 - Innovation, Competition and Product Diversity

AU - De Pirro, Amanda

AU - Foucart, Renaud

PY - 2022/3/23

Y1 - 2022/3/23

N2 - Building on a model of competition with endogenous product differentiationand using data from the shrimp aquaculture industry, we show how a cost-reducing innovation can hurt the profit of the innovator by decreasing product diversity and strengthening competition. In the late 1990s, a US governmental program designed a new pathogen-free breed reducing the production cost of white legs shrimp. This innovation gave a temporary boost to the profit of American producers, largely specialized in that variety. However, over time other countries abandoned their native production to adopt the new breed. In this phase of technological catch-up US producers thus not only lost their cost advantage, but also the market power derived from the pre-innovation product differentiation.

AB - Building on a model of competition with endogenous product differentiationand using data from the shrimp aquaculture industry, we show how a cost-reducing innovation can hurt the profit of the innovator by decreasing product diversity and strengthening competition. In the late 1990s, a US governmental program designed a new pathogen-free breed reducing the production cost of white legs shrimp. This innovation gave a temporary boost to the profit of American producers, largely specialized in that variety. However, over time other countries abandoned their native production to adopt the new breed. In this phase of technological catch-up US producers thus not only lost their cost advantage, but also the market power derived from the pre-innovation product differentiation.

KW - innovation

KW - cost paradox

KW - product differentiation

KW - shrimp

M3 - Working paper

T3 - Economics Working Papers Series

BT - Of Shrimp and Men

PB - Lancaster University, Department of Economics

CY - Lancaster

ER -