In this paper, we design a theoretical model to analyze the impact of the number of firms on investment in the wireless … communications industry. Our model extends the Salop’s framework by introducing investment in quality that either reduces the … their incentives to invest in quality. The impact on the aggregate industry investment can be non-monotone. These …

This paper empirically assesses the impact of the intensity of competition on investment in new technologies within the …-U relationship between competition intensity and investment. The intermediate level of competition intensity that maximizes … investment stands at 62 percent, whereby competition intensity is measured by 1-Lerner index at the firm level. This means that …