Quick Search:

uzh logo
Browse by:
bullet
bullet
bullet
bullet

Zurich Open Repository and Archive 

Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-1149

Athey, Susan; Schmutzler, Armin (2001). Investment and market dominance. RAND Journal of Economics, 32(1):1-26.

[img]
Preview
PDF
3MB

Abstract

We analyze a model of oligopolistic competition with ongoing investment. Special cases include incremental investment, patent races, learning by doing, and network externalities. We investigate circumstances under which a firm with low costs or high quality will extend its initial lead through investments. To this end, we derive a new comparative statics result for general games with strategic substitutes, which applies to our investment game. Finally, we highlight plausible countervailing effects that arise when investments of leaders are less effective than those of laggards, or in dynamic games when firms are sufficiently patient.

Item Type:Journal Article, refereed
Communities & Collections:03 Faculty of Economics > Department of Economics
DDC:330 Economics
Language:English
Date:2001
Deposited On:11 Feb 2008 12:21
Last Modified:27 Nov 2013 18:40
Publisher:RAND Corp.
ISSN:0741-6261
Publisher DOI:10.2307/2696395
Related URLs:http://links.jstor.org/sici?sici=0741-6261%28200121%2932%3A1%3C1%3AIAMD%3E2.0.CO%3B2-F
Citations:Web of Science®. Times Cited: 58
Google Scholar™

Users (please log in): suggest update or correction for this item

Repository Staff Only: item control page