Innovation and market concentration with asymmetric firms
- This paper considers a theoretical model of n asymmetric firms that reduce their initial unit costs by spending on R&D activities. In accordance with Schumpeterian hypotheses we obtain that more efficient (bigger) firms spend more in R&D and this leads to a more concentrated market structure. We also find a positive relationship between innovation and market concentration. This calls for a corrective tax on R&D activities to curtail strategic incentives to over-invest in R&D trying to achieve a higher market share. Klassifikation: L11, L52, O31 . February, 2004.
| Author: | Marc Escrihuela-Villar |
|---|---|
| URN: | urn:nbn:de:hebis:30-10555 |
| Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2004,03 |
| Series (Serial Number): | CFS working paper series (2004, 03) |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2004 |
| Year of first Publication: | 2004 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2005/06/13 |
| Tag: | Asymmetries; Market Concentration; Optimal Industrial Policies; R&D |
| GND Keyword: | Stückkosten; Forschung und Entwicklung |
| Issue: | February, 2004 |
| Source: | CFS working paper ; 2004,03 |
| HeBIS-PPN: | 222328835 |
| Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Licence (German): |  Deutsches Urheberrecht |
