2020/10/19 by Flavio Delbono, Luca Lambertini
Decision Sciences · Economics, Econometrics and Finance · Mathematics · #Arrow #Computer science #Cournot competition #Economic Growth and Productivity #Economics #Firm Innovation and Growth #Geometry #Incentive #Industrial organization #Innovation Diffusion and Forecasting #Management #Mathematical economics #Mathematics #Microeconomics #Neoclassical economics #New product development #Product (mathematics) #Product innovation #Product market
paper · pdf · doi:10.1093/oep/gpaa044
published in Oxford Economic Papers 74(1), 297-311 (Oxford University Press)
openalex publication_date 2020/10/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30
Abstract We investigate the relationship between market concentration and industry innovative effort within a familiar two-stage model of R&D race in which firms compete à la Cournot in the product market. With the help of numerical simulations, we show that such a setting is rich enough to generate Arrovian, Schumpeterian, and inverted U curves. We interpret these different patterns on the basis of the relative strength of the technological incentive and the strategic incentive. We then bridge our theoretical results and some recent empirical research.