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| Hikaru Ogawa and Ming Hsin Lin |
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| ''Cost reducing incentives in a mixed duopoly market'' |
| ( 2005, Vol. 12 No.6 ) |
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| This note studies the cost-reducing incentives in a mixed duopoly market. The result shows that while a profit-maximizing private firm carries out the cost-reducing investment, a social welfare-maximizing firm does not have an incentive to reduce its costs as long as the market share of the private firm is sufficiently large. |
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| Keywords: cost-reducing innovation |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
L3 - Nonprofit Organizations and Public Enterprise: General |
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| Manuscript Received : Nov 25 2004 | | Manuscript Accepted : Jan 26 2005 |
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