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Cellini, Roberto ; Lambertini, Luca
(2004)
R&D Incentives and Market Structure: A Dynamic Analysis.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 12.
DOI 10.6092/unibo/amsacta/4797.
In: Quaderni - Working Paper DSE
(497).
ISSN 2282-6483.
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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.
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