This paper examines the relationship between competition, innovation and productivity for the Netherlands. We use … industry level. We find strong evidence for a positive impact of competition on Total Factor Productivity (TFP) at the industry … level. Competition directly increases TFP by reducing X-ineficiencies and removing inefficient forms from markets, but also …

The effectiveness of relative performance evaluation schemes, such as yardstick competition, can be undermined by … collusion.The degree to which the regulated agents manage to collude will be affected by the particulars of the scheme ….We hypothesize that in a repeated game setting schemes will be more prone to collusion the smaller are the rents to the agents in …

We introduce a new measure of competition: the elasticity of a firm’s profits with respect to its cost level. A higher … popular competition measures such as the price cost margin (PCM). We show that PE and PCM are highly correlated on average …. However, PCM tends to misrepresent the development of competition over time in markets with few firms and high concentration …

This paper introduces a new way to measure competition based on firms' profits.Within a general model, we derive … conditions under which this measure is monotone in competition, where competition can be intensified both through a fall in entry … competition. …

We show that competing firms relax overall competition by lowering future barriers to entry.We illustrate our findings …-period profits.This dampens competition for serving the first-period market. …