This paper develops a theoretical model to study how investment decisions in innovation taken by a single agent are … reaction function between one representative agent's investments in innovation and the other agents' investments in the public …

We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public … to the steady state. While fiercer competition (lower transportation costs or less sluggish demand) leads to higher … quality in both solutions, the quality response to increased competition is weaker when players use feedback strategies …