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- W2034893683 abstract "In a dynamic game of investment in product quality, I investigate whether collusive underinvestment equilibria can be supported by the threat of escalation in investment outlays. When there are no spillovers, underinvestment equilibria exist even though, by deviating, a firm can gain a persistent strategic advantage. When there are strong spillovers, underinvestment equilibria fail to exist. A weakening of patent protection can thus lead to more investment in equilibrium. A “nonfragmentation” result is shown to hold: in all free-entry equilibria, industry concentration is bounded away from zero, no matter how large the market, and despite the existence of underinvestment equilibria." @default.
- W2034893683 created "2016-06-24" @default.
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- W2034893683 date "2007-03-01" @default.
- W2034893683 modified "2023-10-12" @default.
- W2034893683 title "Collusion and dynamic (under-) investment in quality" @default.
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- W2034893683 doi "https://doi.org/10.1111/j.1756-2171.2007.tb00053.x" @default.
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