Competition policy and market leaders

0359253 - NHÚ 2012 RIV NL eng J - Journal Article
Žigić, Krešimir - Maci, Ilir
Competition policy and market leaders.
Economic Modelling. Roč. 28, č. 3 (2011), s. 1042-1049. ISSN 0264-9993. E-ISSN 1873-6122
R&D Projects: GA MŠMT LC542
Institutional research plan: CEZ:AV0Z70850503
Keywords : competition policy * innovation
Subject RIV: AH - Economics
Impact factor: 0.701, year: 2011

We study the potential loss in social welfare and changes in incentives to invest in R&D that result when the market leading firm is deprived of its position. We show that under plausible assumptions like free entry or repeated market interactions there is a social value of market leadership and its mechanical removal by means of competition policy is likely to be harmful for society.
Permanent Link: http://hdl.handle.net/11104/0197071