Cover: Technological Innovation by Firms
Read Online

Technological Innovation by Firms

Enhancement of Product Quality

by Alvin J. Harman, Arthur J. Alexander, M. Davis, Allen D. Lee

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 3.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback72 pages $25.00 $20.00 20% Web Discount

Deals with the effect of technological innovation on product quality change. Several models sort out "technology push" from "demand pull" motivations. The first assumes that product quality can be captured by a scalar measure that is a function of performance dimensions. The second is based on the hedonic price index. Three other approaches are identified, two of which involve quality as a vector of several dimensions of a product. Finally, a product quality model could be devised based on each product's utility to users. Three models are subjected to empirical analysis using data for computers and milling machines. The "hedonic price index" approach seems to provide a better description than does the scalar model. The vector model of quality also shows promise. Choice among models is best made on the basis of analytical objectives for which product quality is being measured. (See also R-2237/1.)

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.