Adner, Ron; Zemsky, Peter - C.E.P.R. Discussion Papers - 2003
vertical differentiation with discrete customer segmentation, we show how the threat of disruption varies with the rate of … discriminate. We characterize the effect of disruption on prices, market shares, social welfare and innovation incentives. We show … that a shift from isolation to disruption lowers prices and increases social welfare, but may either increase or decrease …