It has been suggested that mergers, by increasing concentration, raise incentives to invest and hence are pro …-competitive. To study the effects of mergers, we rewrite a game with simultaneous price and cost-reducing investment choices as one … where firms only choose prices, and make use of aggregative game theory. We find no support for that claim: absent effciency …

between discrete innovation aiming at entirely new technology and continuous improvement consisting of numerous incremental … innovation will lead to a much richer understanding of the interplay between firms’ incentives to innovate and competitive … increase in the size of discrete innovation may decrease firms' incentives to conduct continuous improvement. A unique feature …

positions of their larger, more established rivals. Despite this attention, empirical results relating firm size to innovation … abilities to translate own- and partner-firm experiences into innovation activity. Results from a ten-year study of 463 … diminish as a firm increases in size. The findings broadly support the notion that differences in the incentives and abilities …