Incentives to Innovate in Oligopolies

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type , Research , Book , Preprint 01 Jan 2006 Belgium, Italy English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: Belleflamme Paul; VERGARI, CECILIA;

doi: 10.2139/ssrn.914152 , 10.1111/j.1467-9957.2009.02131.x

handle: 2078.1/4468 , 11568/963195 , 11568/963175 , 11585/73390

Incentives to Innovate in Oligopolies

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Abstract

In the spirit of Arrow (The Rate and Direction of Inventive Activity, Princeton, NJ, Princeton University Press, 1962), we examine, in an oligopoly model with horizontally differentiated products, how much a firm is willing to pay for a process innovation that it would be the only one to use. We show that different measures of competition (number of firms, degree of product differentiation, Cournot vs. Bertrand) affect incentives to innovate in non‐monotonic, different and potentially opposite ways.

Countries

Belgium, Italy

Related Organizations

Roma Tre University
Italy
Université Catholique de Louvain
Belgium
Alma Mater Studiorum University of Bologna
Italy
University of Pisa
Italy

Keywords

innovation; profit incentive; oligopoly; product differentiation, INNOVATION; PROFIT INCENTIVE; OLIGOPOLY; PRODUCT DIFFERENTIATION, Oligopoly, innovation, proﬁt incentive, oligopoly, product dierentiation., Innovation, Product differenciation, Profit incentive, jel: jel:O31, jel: jel:L13

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