We build a dynamic oligopoly model with endogenous entry in which a particular firm (leader) invests in an innovation … the initial oligopoly situation to undertake pre-emptive R&D investment (strategic predation) eventually resulting in the … investment choice, its optimal decision making, and the dynamics of the market structure over time. We also contrast the leader …

This paper investigates the impact of technical progress on the relationship between competition an investment. Using a … find that technical progress, which increases the impact of investment on cost reduction, decreases the level of … competition that maximizes investment of the industry. This feature holds also for consumer surplus and Welfare. In the model …