Monopolistic markets for seeds of a GM generic variety

If a monopolistic firm that controls the GM technology is precluded from access to local varieties, or if the fixed cost of modifying local varieties is too high relative to expected profits, a generic GMV will be introduced to the area grown with variety j. In this case total acreage is /fj and acreage of the generic GMV is A^. The inverse demand fVj^A} and marginal revenue functions MJ^^Aj for this case are defined similarly to the ones in Eqs. (2) and (3), and only the indicator g replaces m. The possible outcome includes

• M*.\: No adoption when PMp8j(o)-PMp°(o)> Vj .

• M8j2\ Partial adoption occurs when PA^{oj-PjMpj(&) > Vj >

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