overinvestment both relative to the mixed-strategy equilibrium and the social optimum. -- All-pay auctions ; oligopoly ; investment … on own effort and negatively on the effort of competitors. Such auctions arise naturally in the context of investment … the strategic situation of a two-stage game with investment preceding homogenous Bertrand competition. We obtain …

We argue that, in a simple setting, the relation between the intensity of competition and cost-reducing investment is U … show that, except for firms that are much less efficient than the competitor, investment in the subgame-perfect equilibrium … leaders. Also consistent with predictions, the relation is negative for firms that are lagging behind. -- Investment …

treatments. Observed prices in the market stage converge to equilibrium price levels. -- R&D investment ; oligopoly ; patents …This paper studies the effects of patents and subsidies on R&D investment decisions. The theoretical framework is a two …-stage game consisting of an investment and a market stage. In equilibrium, both patents and subsidies induce the same amount of R …