Influence of Technical Innovation on Firm Behavior in Classic Oligopoly Market

Technical innovation has a determining effect on economy. The mechanism runs mainly by a systematic conduction when technology brings evolution of industrial organization as variable. And meanwhile, prospective innovation makes strategetic sense of firm behavior and market structure. The current paper attempts to reveal internal links between innovation and Oligopoly market and how innovation acts on firm behavior theoretically by the research on balancing changes of production, price and profit caused by technical innovation.