Citation:
Wu, Pradeep Dubey, and Chien-Wei. “When Less Competition Induces More Product Innovation”. Discussion Papers 2001. Web.
Abstract:
Consider firms which engage in Cournot competition over a common product, but can undertake innovation to improve the quality of their product. In this scenario it can often happen that innovation is discouraged by too much or too little competition, and occurs only when the industry is of intermediate size.