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- W2012504851 abstract "In a classical paper, Arrow (The Rate and Direction of Inventive Activity, 1962, Princeton University Press, pp. 609–626) showed that the benefit of innovation to the single firm with R&D capabilities is higher under perfect competition than under monopoly. Arrow in essence assumed Bertrand (price) competition. In this paper, I examine Cournot (quantity) competition and show that, under weak conditions, the benefit of a small process innovation decreases with the number of firms. I also show that the elasticity of the slope of the inverse demand function plays a critical role in determining the effect of product-market competition on the incentives to innovate." @default.
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- W2012504851 date "1999-12-01" @default.
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- W2012504851 title "Market structure and incentives to innovate: the case of Cournot oligopoly" @default.
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- W2012504851 doi "https://doi.org/10.1016/s0165-1765(99)00169-x" @default.
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