An Investigation of the Effect of Using Anticipation in a Technological Substitution Model

Abstract

Abstract. Whether a new technology can successfully compete against an established one, and either hold its own or indeed replace the older technology depends on many factors, not least of which is the ability of the innovators to anticipate how the market and the existing firms will react to the newcomer. In this paper, we describe and contrast the behaviours of a quadratic recurrence relation derived from a Lotka-Volterra competition model with that of a similar system which has an anticipatory capability.