Incentives to Innovate in Oligopolies

Belleflamme, Paul; Vergari, Cecilia

doi:10.1111/j.1467-9957.2009.02131.x

Cited by 38 publications

(30 citation statements)

References 24 publications

(45 reference statements)

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“…However, none of these works analyzes the role of horizontal product differentiation in the context of policy reform, an aspect which I analyze in this paper. Belleflamme and Vergari (2011) explore the role of product differentiation on the incentive effects of environmental R&D, but put aside the analysis of policy reform of taxes and subsidies on R&D. Gautier (2013) and Lahiri and Symeonidis (2007) examine policy reform in the presence of product differentiation, but the strategic choice of R&D is not present in either analysis. The present analysis derives similar conditions and extends their work by incorporating additional policies in the context of policy reform.…”

Section: Introductionmentioning

confidence: 99%

Policy reform of emission taxes and environmental research and development incentives in an international Cournot model with product differentiation

Gautier¹

2013

Envir. Dev. Econ.

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This paper studies multilateral and unilateral policy reforms of environmental R&D subsidies and emission taxes in a two-country Cournot model with oligopolistic interdependence. The analysis indicates, inter alia, that there is a potential family of multilateral and unilateral policy reforms which can be set by pollution-intensive and pollution-moderate countries to reduce global emissions. In particular, the analysis suggests that a unilateral increase in the subsidy in the pollution-moderate country may reduce global emissions. The multilateral policy reform of the subsidy and tax in the pollution-intensive country can also reduce global emissions and increase welfare under certain conditions. The role of product differentiation in the context of policy reform is also examined. member countries. See http://www.ret.gov.au/Documents/app/default.html. McGinty and de Vries (2009) point out the importance of further research on subsidies in the context of environmental policy. Additionally, it will be clear throughout the paper that the present analysis of multilateral policy is relevant to the case of countries/industries with different pollution intensity coefficients; data on pollution intensity coefficients across countries/industries can be found in US Department of Commerce (2010) and the Global Energy Statistical Yearbook.

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Section: Introductionmentioning

confidence: 99%

Policy reform of emission taxes and environmental research and development incentives in an international Cournot model with product differentiation

Gautier¹

2013

Envir. Dev. Econ.

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“…Bekkers, R., G. Duysters and B. Verspagen [7] focused on intellectual property rights & its influence on competition. Belleflamme, Paul and Cecilia Vergari [8] provided analysis of oligolistic markets. What is problematic from a legal standpoint is the introduction of the dynamic dimension of innovation in the analysis, that is, of innovation-related arguments that are yet to materialized when administrative action takes place.…”

Section: Investigations On Alibaba and Amazonmentioning

confidence: 99%

Eu Legal Regulation of Competition in Innovative Markets

Smyrnova

2018

APIR

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The digital world is highly dynamic. The only way of survival is to keep innovating, in some extend even invent a way (legal or illegal) to secure its position. As this new phenomenon becomes increasingly sophisticated, the need for laws to govern it becomes more poignant. In consequence, the European Union has taken various actions towards realizing this aim of regulating the digital platform horizon. The evolutionary development of active & passive selling through new electronic or other innovative means which is currently erases national borders leads to the comprehensive involvement of different national competition regimes. The competition authority has kept close scrutinizing on those firms in dominant position in their relevant market. Not only this, as the digital market is mostly multiple sided, the interaction between market are also taking care. However, the competition laws should adapt in the proactively to prevent the anti-competitive measures. The competition authority needs to have the anticipation on the dynamic evolution of competition in digital market and act proactively. Thus the most crucial aspect is to balance the innovative progress & the necessity to control on competition. This article examines how the nature and logic of competition law changes as authorities expand the time horizon that they consider in their prospective analysis.

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“…Lin and Saggi (2002) show the effects of competition on product and process R&D. Under nondrastic innovation and considering the degree of product differentiation, the number of firms and the different types of product market competition (i.e. Cournot and Bertrand competition) as three different measures of the strength of competition, Belleflamme and Vergari (2010) show a nonmonotonic relationship between competition and innovation. However, none of these papers considers the effects of competition on welfare, which is our major focus.…”

Section: Thementioning

confidence: 99%

Competition, Innovation and Welfare*

Mukherjee

2011

The Manchester School

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In an economy with drastic innovation, we analyze the effects of product market competition on social welfare. Considering Cournot and Bertrand competition as different types of product market competition, we show that Cournot competition may generate higher social welfare depending on the difference between the pre-and post-innovation costs of production and the magnitude of R&D productivities. In our analysis, R&D investments are higher under Bertrand (Cournot) competition if R&D productivities are sufficiently low (high).

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Incentives to Innovate in Oligopolies

Cited by 38 publications

References 24 publications

Policy reform of emission taxes and environmental research and development incentives in an international Cournot model with product differentiation

Policy reform of emission taxes and environmental research and development incentives in an international Cournot model with product differentiation

Eu Legal Regulation of Competition in Innovative Markets

Competition, Innovation and Welfare*

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