Schmutzler, Armin - In: International Journal of Industrial Organization 31 (2013) 5, pp. 477-487
competition leads to more cost-reducing investments. The framework can, for instance, capture increasing substitutability for … different types of oligopoly models or changes from Cournot to Bertrand competition. The paper identifies four transmission … mechanisms by which competition affects investment. For a firm with lower initial marginal costs (higher efficiency), a positive …