Segal, Ilya (contributor); Whinston, Michael D. (contributor) - 2004
-term contracts.
17
In general, innovation may be either insufficient or excessive because of “Schumpeterian”
and “business stealing … necessarily posi-
tive, given that the equilibrium innovation rate may be above the first-best level due to
business stealing (see …, observe that potential entrants, who directly suffer from the business-stealing effect, are nec-
essarily better off when α …