New goods are at the heart of economic progress. The eleven essays in this volume include historical treatments of new goods and their diffusion; practical exercises in measurement addressed to recent and ongoing innovations; and real-world methods of devising quantitative adjustments for...

We evaluate the sources of transitory market power in personal computers in the late 1980s to explain how high rates of imitative entry coexisted with high rates of innovative investment. We measure the impact of different principles of differentiation (PDs); each PD reflects a distinct notion...

This paper evaluates the sources of transitory market power in the market for personal computers (PCs) during the late 1980's. Our analysis is motivated by the coexistence of low entry barriers into the PC industry and high rates of innovative investment by a small number of PC manufacturers. We...