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Does AMD spur Intel to innovate more?

Author

Listed:
  • Brett Gordon

    (Columbia University)

  • Ronald Goettler

    (University of Chicago)

Abstract

present. Counterfactuals reveal that consumer surplus can actually increase as the market moves toward monopoly, which suggests policymakers ought to consider the dynamic trade-off of lower current consumer surplus from higher prices for higher future surplus from more innovation. Comparative statics reveal that competition does induce higher innovation if consumers have sufficiently high preferences for quality and low price sensitivity.

Suggested Citation

  • Brett Gordon & Ronald Goettler, 2010. "Does AMD spur Intel to innovate more?," 2010 Meeting Papers 151, Society for Economic Dynamics.
  • Handle: RePEc:red:sed010:151
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    References listed on IDEAS

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