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 …

tax incentives are found to play a role in fostering innovation. In addition we find important effects on the incentives …In the past decades the role of profit sharing schemes (PSS) as a way to foster innovation in a principal-agent context …, and more generally of innovation in economic growth, have been widely acknowledged and studied. However, surprisingly …

, innovation …