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Increasing Dominance With No Efficiency Effect

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  • Luis Cabral

Abstract

I uncover a new force towards increasing dominance. The new effect results from the strategic choice of covariance in races. I assume that players must choose not the amount of resources to spend but how to allocate those resources. I show that the laggard has an incentive to chose a different path from the leader.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Luis Cabral, 2000. "Increasing Dominance With No Efficiency Effect," Working Papers 00-06, New York University, Leonard N. Stern School of Business, Department of Economics.
    • Handle: RePEc:ste:nystbu:00-06
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    File URL: http://w4.stern.nyu.edu/economics/docs/workingpapers/2000/00-06Cabral.pdf
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    References listed on IDEAS

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    7. Cabral, Luis M B & Riordan, Michael H, 1994. "The Learning Curve, Market Dominance, and Predatory Pricing," Econometrica, Econometric Society, vol. 62(5), pages 1115-1140, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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