We study the efficiency of oligopoly equilibria in a model where firms compete over capacities and prices. The … demands across the firms. We first establish the existence of pure strategy subgame perfect equilibria (oligopoly equilibria … oligopoly equilibria of this game can be arbitrarily low. However, if the best oligopoly equilibrium is selected (among multiple …

frontier? This paper models agents growing as a result of investments in innovation and imitation. Imitation facilitates … technology diffusion, with the productivity of imitation modeled by a catch-up function that increases with distance to the …

This paper develops a North-South product model in which Southern imitation and the North-South flow of foreign direct … imitation, which, in turn, increases the flow of FDI. The increase in FDI more than offsets the decline in production undertaken …

which Northern innovation, Southern imitation, and FDI are all endogenous. Our model predicts that IPR reform in the South …

Oligopoly models of price competition predict that strategic firms exercise market power and generate inefficiencies …