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Technological leadership and persistence of monopoly under endogenous entry: static versus dynamic analysis
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SYSNO ASEP 0343623 Document Type J - Journal Article R&D Document Type Journal Article Subsidiary J Článek ve WOS Title Technological leadership and persistence of monopoly under endogenous entry: static versus dynamic analysis Author(s) Kováč, Eugen (NHU-N) RID
Vinogradov, Viatcheslav (NHU-N)
Žigić, K. (CZ)Source Title Journal of Economic Dynamics & Control. - : Elsevier - ISSN 0165-1889
Roč. 34, č. 8 (2010), s. 1421-1441Number of pages 21 s. Language eng - English Country NL - Netherlands Keywords dynamic oligopoly ; persistence of monopoly ; strategic predation Subject RIV AH - Economics CEZ AV0Z70850503 - NHU-N (2005-2011) UT WOS 000279092300007 EID SCOPUS 77953291088 DOI 10.1016/j.jedc.2010.03.011 Annotation We build a dynamic oligopoly model with endogenous entry in which a particular firm (leader) invests in an innovation process, facing the subsequent entry of other firms (followers). We identify conditions that make it optimal for the leader in the initial oligopoly situation to undertake pre-emptive R&D investment (strategic predation) eventually resulting in the elimination of all followers. Compared to a static model, the dynamic one provides new insights into the leader's intertemporal investment choice, its optimal decision making, and the dynamics of the market structure over time. We also contrast the leader's investment decisions with those of the social planner. Workplace Economics Institute Contact Tomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122 Year of Publishing 2011
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