Empirical studies have uncovered an inverted-U relationship between product-market competition and innovation. This is … inconsistent with the original Schumpeterian Model, where greater competition reduces the profitability of innovation. We show that … the model can predict the inverted-U if the innovators' talent is heterogenous, and privately observable. With competition …

competition, and/or the behavioral impacts of competition. Psychologically, a competitive environment alters incentives for ….e., succeeding in a competition is valuable per se. We design an experiment that allows us to disentangle financial and psychological …

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. …

We address the question of how lending market competition, measured by the bargaining power of banks, affects the … agency costs of debt finance. It is shown that intensified lending market competition will lead to lower lending rates and … lending market competition will reduce the agency cost of debt financing. Hence, our analysis does not lend support to the …

Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient … auction to guard against firms bidding low to win the contract and then cutting back on effort. While competition helps reduce …

We model competition on a credence market governed by an imperfect label, signaling high quality, as a rank …