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 …

Recent empirical studies find vast industry differences in how patent protection influences innovation and growth. An … patent strength. It is found that patents ought to be weaker, the more intense competition, the higher R&D productivity, and … the more intricate reverse engineering are. Unlike similar step-by-step innovation models of economic growth, the model …

This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory … innovations. Furthermore, it leads to strategic duplication of the entrant's innovation by the incumbent. These negative … innovation effects of restrictive acquisition policy have to be weighed against the pro-competitive effects of preserving …

This papers analyses how horizontal mergers affect innovation activities of the merged entity and its non … predicts that a merger is more likely to be profitable in an innovation intensive industry. For a high degree of firm … heterogeneity a merger reduces innovation in both the merged entity and in non-merging competitors in an industry with high R …

This paper investigates competition between health care insurance companies under different funding regulations. We … consider two alternatives advanced in recent German health care reform discussions: competition by contribution rates (health … contributions) and by fees (health premia). We find that competition by contributions can yield lower company profits and higher …

specialization/complexity effect, on the one hand, and the competition effect, on the other hand. How the interaction between these … of competition, remains unaffected by entry, as well as by market-size shocks. As a consequence, the competition effect …: (i) a competition effect, which stems from the market interactions between producers of intermediate inputs, and (ii) a …

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. …