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We analyze the link between entry and R&D spending distribution. We consider a monopolistic competitive market with free entry in which firms can invest in cost-cutting R&D by paying a fixed cost first. For an intermediate level of fixed cost, there is a unique equilibrium in which the market...
Persistent link: https://www.econbiz.de/10013158070
We analyze the link between entry and Ramp;D spending distribution. We consider a monopolistic competitive market with free entry in which firms can invest in cost-cutting Ramp;D by paying a fixed cost first. For an intermediate level of fixed cost, there is a unique equilibrium in which the...
Persistent link: https://www.econbiz.de/10012720651