Imperfect International Competition in Innovation and Product Markets PDF Download

Author: Andrew Ronald Dick
Publisher:
ISBN:
Category : Research, Industrial
Languages : en
Pages : 488

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Author: Jiandong Ju
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Both horizontal and vertical innovations are studied in this paper, using monopolistic and oligopolistic competition models with multiproduct firms. We consider a two-stage game. In the first stage, all firms simultaneously choose their own number of products. In the second stage, firms make price decisions to maximize the sum of profits for their own products where a compound CES utility function is considered. We assume that the elasticity of substitution across the products produced within the same firm is different from the elasticity of substitution across the products produced by different firms. A firm's innovation level is shown to increase either as income increases or as the firm's entry cost increases. The firm's innovation level decreases either when the elasticity of substitution across products produced by different firms increases or when the marginal cost of innovation increases. In a symmetric equilibrium, firms produce differentiated products with the same level of quality. In contrast to other imperfect competition models with multiproduct firms, the model studied in this paper has the following characteristics: 1) The model is simple and sufficiently general. The model is made easily comparable with the Dixit-Stiglitz (1977) model to increase applicability. 2) The product managers of the same firm behave cooperatively rather than independently. 3) The number of firms is endogenous rather than exogenous, which is determined by a free-entry condition. Since the marginal innovation cost can connected to the usage of human capital and the entry cost can be connected to the investment cost, the model developed in this paper can be easily applied to the studies of labor market, capital market, and technology market. While the corresponding applications in international trade, industrial organization, and macroeconomics may be interesting, they are left for further research.

Author: Federico Etro
Publisher: Springer
ISBN: 9783642080524
Category : Science
Languages : en
Pages : 0

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This book reviews recent progress in the theory of oligopoly and market leadership and provides new results on the theory of Stackelberg competition and Nash competition with strategic investment under endogenous entry. These theories are applied to models of competition in quantities, prices and to patent races. The results are used to propose a new approach to competition policy and issues of the abuse of dominance.

Author: Thomas-Olivier Leautier
Publisher: MIT Press
ISBN: 0262039281
Category : Business & Economics
Languages : en
Pages : 413

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The first textbook to present a comprehensive and detailed economic analysis of electricity markets, analyzing the tensions between microeconomics and political economy. The power industry is essential in our fight against climate change. This book is the first to examine in detail the microeconomics underlying power markets, stemming from peak-load pricing, by which prices are low when the installed generation capacity exceeds demand but can rise a hundred times higher when demand is equal to installed capacity. The outcome of peak-load pricing is often difficult to accept politically, and the book explores the tensions between microeconomics and political economy. Understanding peak-load pricing and its implications is essential for designing robust policies and making sound investment decisions. Thomas-Olivier Léautier presents the model in its simplest form, and introduces additional features as different issues are presented. The book covers all segments of electricity markets: electricity generation, under perfect and imperfect competition; retail competition and demand response; transmission pricing, transmission congestion management, and transmission constraints; and the current policy issues arising from the entry of renewables into the market and capacity mechanisms. Combining anecdotes and analysis of real situations with rigorous analytical modeling, each chapter analyzes one specific issue, first presenting findings in nontechnical terms accessible to policy practitioners and graduate students in management or public policy and then presenting a more mathematical analytical exposition for students and researchers specializing in the economics of electricity markets and for those who want to understand and apply the underlying models.

Author: David Greenaway
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 274

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Author: W. Kingston
Publisher: Springer Science & Business Media
ISBN: 9400960719
Category : Business & Economics
Languages : en
Pages : 278

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Innovation is the turning of ideas into concrete realities. To the extent that this process is an economic one, it must also be subject to political decisions, and these determine which ideas are to have resources made available for their in novation. This book attempts to trace the relationship between ideas, resources and politics. Chapter I deals with the way economic innovation depends both upon markets and upon interference with markets. Schumpeter taught us how market power is essential for innovation. This chapter stresses that the inverse is also true: Innovation can take place wherever there is market power. A most important corollary of this, is that failure to develop any particular type of market power, need not prevent innovation from happening. It will then take place under the protection of whatever market power there is, and it will be geographically located wherever that market power is effective. Chapter II identifies and seeks to fill a major gap in the literature on innova tion, by showing how important modern marketing has become for providing the conditions under which money may be rationally invested at high risk to get new things done. Marketing monopoly, or Persuasive market power, is now at least as important as the market power of Capability, or as the several types of Specific market power, in interference with market forces. It is therefore equally important for innovation.

Author: Michael L. Katz
Publisher:
ISBN:
Category : Competition, Imperfect
Languages : en
Pages : 458

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Author: Emili Grifell-Tatjé
Publisher: Oxford University Press
ISBN: 0190226730
Category : Business & Economics
Languages : en
Pages : 902

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Productivity underpins business success and national well-being and thus it is crucial to understand the factors that influence productivity growth. This volume provides a comprehensive exploration into the significance of productivity growth for business, the economy, and for social economic progress. It examines how productivity is defined, measured and implemented. It also surveys the dispersion of productivity across time and place, focusing on the productivity dynamics that either leads to a reallocation of resources that reduces dispersion and increases aggregate productivity or, conversely, allows dispersion to persist behind barriers to productivity-enhancing reallocation. A third focus is an investigation of the drivers of, or impediments to, productivity growth, some of which are organizational in nature and under management control and others of which are institutional in nature and subject to public policy intervention. The Oxford Handbook of Productivity Analysis contains contributions of distinguished productivity experts from around the world who analyze a wide range of timely issues. These issues concern purely analytical topics surrounding the measurement of productivity in various situations, beginning with the ideal situation in which all inputs and all outputs, and their prices, are observed accurately. They also include service sectors such as education in which the services provided are hard to define, much less measure, and other sectors that generate undesirable environmental externalities that are difficult to price and complicate the very definition of productivity. The issues also involve business management topics ranging from the role of business models and benchmarking to the quality of management practices, the adoption of new technologies, and possible complementarities between the two. The relationship between productivity and business performance is also explored. At a more aggregate level the issues range from the impacts of market power, incentive regulation, international trade and global value chains on productivity, to the contribution of productivity to economic development and economic welfare.

Author: Michael E. Porter
Publisher:
ISBN:
Category : Competition, International
Languages : en
Pages : 0

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Author: Peter J. Buckley
Publisher: Springer
ISBN: 1349116998
Category : Business & Economics
Languages : en
Pages : 361

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This volume identifies and analyses the crucial issues in the impact of multinational enterprises (MNEs) on less developed countries (LDCs). Although the authors take a variety of wide stances on the important questions a uniformity of approach emerges. The perspective is essentially that of economic analysis but it is enlivened by unorthodox concepts derived from related social science disciplines. The chapters cover the process of development, paying attention to entrepreneurship, cultural factors and management styles and examine the impact on welfare and income distribution in the host country.