Process Innovation and the Persistence of Monopoly with Labour-Managed Firms

Lambertini, Luca (1998) Process Innovation and the Persistence of Monopoly with Labour-Managed Firms. Bologna: Dipartimento di Scienze economiche DSE, p. 14. DOI 10.6092/unibo/amsacta/5042. In: Quaderni - Working Paper DSE (268). ISSN 2282-6483.
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Abstract

The issue of the persistence of monopoly when at least one labour-managed firm takes part in an auction for a cost-reducing innovation is tackled in this paper. It is shown that (i) when the incumbent is a profit-maximizing firm while the entrant is a labour-managed firm, monopoly persists; (ii) when both firms are labour-managed, monopoly persists only if the technology initially employed by the incumbent is highly inefficient as compared to the new one; and, finally, (iii) when the incumbent is labour-managed while the outsider is a profit seeking agent, then entry always occurs and monopoly changes hands.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca
Keywords
auction, process innovation, persistence of monopoly, efi- ciency effect, labour-managed firms
Subjects
ISSN
2282-6483
DOI
Deposit date
01 Apr 2016 10:01
Last modified
01 Apr 2016 10:01
URI

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