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Títol:
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Product differentiation, competitive pressure and the effects of innovation on the success and survivability of firms in oligopoly markets
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Autor/a:
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Theilen, Bernd, 1965-
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Altres autors:
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Universitat Rovira i Virgili. Departament d'Economia |
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Resum:
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In a recent paper Tishler and Milstein (2009) fi…nd that increased competition
may increase aggregate R&D spending while market output decreases. Therefore,
they obtain the surprising result that R&D spending is excessive when competition
becomes intense. Their result is based on the standard linear demand function for
differentiated products introduced by Bowley (1924) where decreased product differentiation is interpreted as more competitive pressure. In this paper I show that
at an aggregate level this interpretation is problematic because equilibrium effects
are dominated by a demand reduction effect. A slight modifi…cation of the standard
demand function eliminates this effect. For the Tishler and Milstein (2009) setting
it is shown that then increased competition increases both R&D spending and aggregate market output. Therefore, at least for consumers, more intense competition
increases welfare.
Journal of Economic Literature Classi…fication Numbers: D43, L1, O3.
Keywords: Oligopoly markets, Product differentiation, Competitive pressure. |
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Data de publicació:
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2010 |
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Matèries (CDU):
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33 - Economia |
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Matèries:
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Oligopolis
Diferenciació de productes
Competència econòmica
Tecnologia -- Innovacions
Rendiment |
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Drets:
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Aquest document està subjecte a una llicència d'ús de Creative Commons, amb la qual es permet copiar, distribuir i comunicar públicament l'obra sempre que se'n citin l'autor original, la universitat i el departament i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús (http://creativecommons.org/licenses/by-nc-nd/2.5/es/) |
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Tipus de document:
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Document de treball |
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ISSN:
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ISSN 1988 - 0812
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Col·lecció:
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Documents de treball del Departament d'Economia;2010-15
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Compartir:
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