This paper investigates the impact of technical progress on the relationship between competition an investment. Using a … model of oligopoly competition with differentiated products where firms invest to reduce their marginal cost of production … competition that maximizes investment of the industry. This feature holds also for consumer surplus and Welfare. In the model …

The relationship between technical progress and price competition is a controversial issue in economics. This paper … highlights the fact that investment in technical progress is an authentic type of competition which benefits the consumers rather … than the industry. This type of competition exists when the potential for technical progress, which can be incorporated by …

incentives are positively related to the potential for technical progress. They also depend on market structure, competition …. As a result, the maximum consumer surplus as well as welfare occurs under imperfect competition and not under perfect … competition. …

This paper empirically assesses the impact of the intensity of competition on investment in new technologies within the …-U relationship between competition intensity and investment. The intermediate level of competition intensity that maximizes … investment stands at 62 percent, whereby competition intensity is measured by 1-Lerner index at the firm level. This means that …