The ratios of spending on R&D, advertising and marketing to sales are employed accordingly as direct determinants of the degree of vertical and horizontal product differentiation. The model is verified with direct regressions and a system of simultaneous regressions combining large firm survey...

In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would...