All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Pedro Mendi
''Competitive pressure and innovation in vertically differentiated markets''
( 2015, Vol. 35 No.4 )
This paper analyzes the innovation incentives for a firm that produces a vertically differentiated product, in the presence of a competitive fringe that produces a lower-quality product. I find that the relationship between innovation incentives and competition, measured by the difference in quality levels may exhibit an inverted-U-shaped pattern.
Keywords: Vertical differentiation, innovation, competitive pressure
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
O3 - Technological Change; Research and Development: General
Manuscript Received : Aug 18 2014 Manuscript Accepted : Nov 20 2015

  This abstract has been downloaded 1271 times                The Full PDF of this paper has been downloaded 154262 times