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 competitors on firms' incentives to introduce new products and to undertake cost-reducing and quality-enhancing investments. Last, we explore how acquiring an innovative entrant can affect the investment incentives of both the acquiring entity and the acquired company.
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 March 2024.
See also
Published in
TSE Working Paper, n. 23-1491, November 2023, revised March 2024