Incentives To Innovate In Oligopolies
AbstractIn the spirit of Arrow (1962), we examine, in an oligopoly model with horizontally differentiated products, how much a firm is willing to pay for a process innovation that it would be the only one to use. We show that different measures of competition (number of firms, degree of product differentiation, Cournot vs Bertrand) affect incentives to innovate in non-monotonic, different, and potentially opposite ways.
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Bibliographic InfoArticle provided by University of Manchester in its journal The Manchester School.
Volume (Year): 79 (2011)
Issue (Month): 1 (January)
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Other versions of this item:
- BELLEFLAMME, Paul & VERGARI, Cecilia, 2006. "Incentives to innovate in oligopolies," CORE Discussion Papers 2006014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Paul, BELLEFLAMME & Cecilia, VERGARI, 2006. "Incentives to innovate in oligopolies," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2006008, Université catholique de Louvain, Département des Sciences Economiques.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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