Abstract
This paper reviews recent studies on the impact of changes in market structure on investments. First, we examine the relationship between competition intensity and investments from both theoretical and empirical perspectives. Second, we discuss the impact of mergers among competing incumbents on firms' incentives to introduce new products and to undertake cost-reducing and quality-enhancing investments. Last, we explore how the acquisition of an innovative entrant by an incumbent can affect the investment incentives of both firms.
Keywords
Competition; Investments; Innovation; Mergers; Entry;
JEL codes
- D43: Oligopoly and Other Forms of Market Imperfection
- L13: Oligopoly and Other Imperfect Markets
- L40: General
Reference
Yassine Lefouili, and Leonardo Madio, “Market Structure and Investments : A Progress Report”, TSE Working Paper, n. 23-1491, November 2023, revised September 2024.
See also
Published in
TSE Working Paper, n. 23-1491, November 2023, revised September 2024