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Market Structure and Investments : A Progress Report

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  • Lefouili, Yassine
  • Madio, Leonardo

Abstract

This paper reviews recent studies on the impact of changes in market structure on investments. First, we examine the relationship between competition intensity and investments from both theoretical and empirical perspectives. Second, we discuss the impact of mergers among competitors on firms' incentives to introduce new products and to undertake cost-reducing and quality-enhancing investments. Last, we explore how acquiring an innovative entrant can affect the investment incentives of both the acquiring entity and the acquired company.

Suggested Citation

  • Lefouili, Yassine & Madio, Leonardo, 2023. "Market Structure and Investments : A Progress Report," TSE Working Papers 23-1491, Toulouse School of Economics (TSE), revised Mar 2024.
    • Handle: RePEc:tse:wpaper:128758
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    More about this item

    Keywords

    Competition; Investments; Innovation; Mergers; Entry;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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