In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the …

We argue that, in a simple setting, the relation between the intensity of competition and cost-reducing investment is U … is minimal for intermediate levels of competition, which is inversely parameterized by the extent of product … ; intensity of competition ; experiment …

The paper analyzes the effects of more intense competition on firms' incentives to invest in process innovations. We … carry out experiments for two-stage games, where R&D investment choices are followed by product market competition. As … implemented and in treatments in which only one stage is implemented. -- R&D investment ; intensity of competition ; experiment …

-7% higher without divestitures. Up to 30% savings could have been obtained in Latin America by emulating the pro-competition …