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This paper examines the effect of competition on the irreversible investment decisions under uncertainty as a …
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We examine the interplay of endogenous vertical integration and costreducing downstream investment in successive oligopoly. We start from a linear Cournot model to motivate our more general reducedform framework. For this general framework, we establish the following main results: First,...
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This paper uses two sources of information and different methodologies to analyze the causal effect of product and process innovation on productivity in the Chilean manufacturing industry during the past decade. In general, the evidence suggests there is not a contemporaneous effect of product...
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The effect of market competition on firm innovation remains controversial, especially in the context of developing … countries. This paper presents new empirical evidence about the causal impact of competition on firm innovation for Chilean and … Colombian manufacturing firms. Using instrumental-variable estimation, our results show that market competition increases firm …
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