Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Wednesday, May 22, 2013

Competition and Growth: Reinterpreting their Relationship

Posted by D. Daniel Sokol

Daria Onori (Aix-Marseille University) explores Competition and Growth: Reinterpreting their Relationship.

ABSTRACT: In this paper we modify a standard quality ladder model by assuming that R&D is driven by outsider firms and the winners of the race sell licenses over their patents, instead of entering directly the intermediate good sector. As a reward they get the aggregate profit of the industry. Moreover, in the intermediate good sector firms compete a la Cournot and it is assumed that there are spillovers represented by strategic complementarities on costs. We prove that there exists an interval of values of the spillover parameter such that the relationship between competition and growth is an inverted-U-shape.

http://lawprofessors.typepad.com/antitrustprof_blog/2013/05/competition-and-growth-reinterpreting-their-relationship-.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef017d42f6ebda970c

Listed below are links to weblogs that reference Competition and Growth: Reinterpreting their Relationship :

Comments

Post a comment