Multi-market competition, R&D, and welfare in oligopoly

We investigate a multi-market Cournot model with strategic process R&D investments wherein a multi-market monopolist meets entrants that enter one of the markets. We find that entry can enhance the total R&D expenditure of the incumbent firm. That is, entry can stimulate R&D effort. Moreover, the incumbent's profit nonmonotonically changes as the number of entrants increases. Depending on the fixed entry costs and R&D technologies, both insufficient and excess entry can appear.

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Year of publication:	2010
Authors:	Kawasaki, Akio ; Lin, Ming Hsin ; Matsushima, Noriaki
Publisher:	Osaka : Osaka University, Institute of Social and Economic Research (ISER)
Subject:	Markteintritt \| Investition \| Technischer Fortschritt \| Wohlfahrtsanalyse \| Oligopol \| Theorie \| multi-market \| oligopoly \| process R&D \| entry \| welfare

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Series:	ISER Discussion Paper ; 796
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	641461143 [GVK] hdl:10419/92835 [Handle]
Classification:	L13 - Oligopoly and Other Imperfect Markets ; O32 - Management of Technological Innovation and R&D ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms
Source:	EconStor

Persistent link: https://www.econbiz.de/10010332451