Market Constraint on Technology Upgrading of Equipment Manufacturing Industry by Downstream Enterprises' Loss Aversion

【摘要】：It is the equipments' technical and functional complexity,advancement and using uncertainty that leads to high loss aversion of the downstream enterprises.This paper establishes a quality choice model introducing utility function of loss aversion,and theoretically indicates the mechanism that loss aversion restrains equipment manufacturing industry's technology upgrading by analyzing downstream purchasing behavior.The essence of this paper is introducing that loss aversion intensifies the condition of shrinking market demand and weakens the local enterprises' motivation of RD,as a result the upgrading process has been restrained.Then,the paper measures the degree of loss aversion by using the changes of industry-added-value-ratio-difference,and performs a regression analysis of data from seven equipment industries by introducing a panel data model containing an interaction terms which means the interaction between loss aversion and market demand.The result shows that comparing with the condition of non loss aversion,the elasticity of market demand falls by 3.3% when loss aversion exists,which means loss aversion restrains technology upgrading through the intervening variable,market demand.Therefore,this paper states that reversely integrating industry chain based on terminal market driven and strengthening the cooperation and interaction between the buyers and producers may eliminate the loss aversion,expand market share and promote the technology upgrading.