carry out experiments for two-stage games, where R&D investment choices are followed by product market competition. As … predicted by theory, an increase in the number of firms from two to four reduces investments. However, a positive effect is … observed for a switch from Cournot to Bertrand, even though theory predicts a negative effect in the four-player case. This …

competitors. Because workers participate in the returns on investment while only firms bear the costs, investment is inefficiently … low. A binding minimum wage can achieve the first--best level of investment, both in the short run for a given number of … firms and in the long run when the number of firms is endogenous. -- holdup ; investment ; minimum wage …