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We examine the interplay of endogenous vertical integration and cost-reducing downstream investment in successive oligopoly. We start from a linear Cournot model to motivate our more general reduced-form framework. For this general framework, we establish the following main results: First,...
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future upstream entry cannot be discouraged; or (b) it also deters future upstream entry by weakening competition for the …
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) competition in the development and marketing of the resulting product. The competitive interactions that occur substantially … these interactions. Implementation of the model shows that competition in R&D, in general, not only increases production and …
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What is the interaction between competition, R&D investments, and the financing choices of R&D-intensive firms …? Motivated by existing theories, we hypothesize that as competition increases, R&D-intensive firms will: (1) increase R … industries, as well as heterogeneity within the biopharma industry, in response to an exogenous change in competition. We also …
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