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Intensity of Competition and Adoption of Product Innovations: Comparing Incentives for Innovations and Welfare under Cournot and Bertrand Competition
| Content Provider | Semantic Scholar |
|---|---|
| Author | Shieh, Shiou |
| Copyright Year | 2015 |
| Abstract | We examine the possible superiority of Cournot versus Bertrand competition in the context of product innovations. We show a nonmonotone relation between the intensity of competition and incentives for innovations, and find conditions under which both consumer surplus and social welfare are higher under Cournot competition, whereas industry profits may be lower. Regarding the forces behind the result that social welfare is higher under Cournot competition, we also present new insights. |
| Starting Page | 1 |
| Ending Page | 41 |
| Page Count | 41 |
| File Format | PDF HTM / HTML |
| Volume Number | 51 |
| Alternate Webpage(s) | http://www.ntpu.edu.tw/econ/files/Journal/20150302154551.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |