We investigate dynamic R&D for process innovation in an oligopoly where firms invest in cost-reducing activities. We focus on the relationship between R&D intensity and market structure, proving that the industry R&D investment monotonically increases in the number of firms. This Arrowian result contradicts the established wisdom acquired from static games on the same topic.
CELLINI R., LAMBERTINI L. (2005). R&D Incentives and Market Structure: A Dynamic Analysis. JOURNAL OF OPTIMIZATION THEORY AND APPLICATIONS, 126, 85-96 [10.1007/s10957-005-2659-0].
R&D Incentives and Market Structure: A Dynamic Analysis
LAMBERTINI, LUCA
2005
Abstract
We investigate dynamic R&D for process innovation in an oligopoly where firms invest in cost-reducing activities. We focus on the relationship between R&D intensity and market structure, proving that the industry R&D investment monotonically increases in the number of firms. This Arrowian result contradicts the established wisdom acquired from static games on the same topic.File in questo prodotto:
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