van de Klundert, Theo; Smulders, Sjak - In: Scandinavian Journal of Economics 99 (1997) 1, pp. 99-118
The impact of competition on growth and welfare is analyzed by developing a model in which the number of firms, profit margins, and innovation rates are endogenous. Different regimes of oligopolistic competition are distinguished. The tougher the price competition, the lower the profit margins...