idea in a general equilibrium model with endogenous price flexibility and entry-exit. Faced with higher productivity … uncertainty, firms set prices more flexibly. This improves their resilience, reducing exit and output losses in response to …

and competition on the product market. Product innovation is assumed to increase consumer utility but is effective only if … the innovating firm invests in marketing, so that consumers become aware of the newly developed product. Firms first … market. In the final stage of the game, they are involved in competition on the product market. Key findings of the …

We report on two experiments that identify non-monetary incentive effects of competition. As the number of competitors …-monetary incentive effects of competition going in the opposite direction. In the experiments we change the number of competitors … comparisons as one potential mechanism for this effect. It shows that competition turns the effort decisions of competing managers …

framework at the industry level of aggregation. We use a model in which R&D affects both, demand and cost conditions. An … optimization process leads to optimal industry R&D expenditure and market structure in a symmetric equilibrium. The model is … concentration. In contrast, competition enforces innovation, i.e. sales concentration has a negative impact on R&D. …

for firms in financial distress. Regarding market discipline, productivity grows faster when competition on product …

We investigate the impact of product market competition on firms’ automation investments. We use a rich combination of … micro-data on Portuguese exporters and exploit a novel source of variation in the degree of competition they face – a tariff … competition in export markets tend to reduce investments in automation technologies. These average negative effects are driven by …