Published 2000 | Version v1
Journal article

Competition, Innovation And Increasing Returns

Description

When firms enjoy increasing returns in presence of a high rate of innovation, competition may obtain due to the continuous changes in demand and cost conditions even when there is no differentiation and the products of competing firms are essentially homogeneous. In this paper we intend to provide theoretical structure to this conjecture, and to confirm it by carrying out a simulation analysis in the case of two firms competing on the market.

Additional details

Created:
December 3, 2022
Modified:
November 30, 2023