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The Emergence of Disruption

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We study the influence of technological efficiency and organizational inertia on the emergence of competition when firms decide myopically. Using an agent-based computer simulation model, we observe the competitive reaction of a former monopolist to the advent of a new competitor. While the entrant uses a new technology, the monopolist is free either to stick to his former technology or to switch to the new one. We find that?irrespective of details regarding the demand side?a change of industry leadership occurs only if the new (?disruptive?) technology is not too efficient and organizations are inert. (author's abstract) ; Series: Working Papers SFB "Adaptive Information Systems and Modelling in Economics and Management Science"

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Christian Buchta, David Meyer, Andreas Mild, Alexander Pfister, Alfred Taudes

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