Detalle Publicación


Competitive pressure and innovation in vertically differentiated markets

Título de la revista: ECONOMICS BULLETIN
ISSN: 1545-2921
Volumen: 35
Número: 4
Páginas: 2309 - 2316
Fecha de publicación: 2015
This paper analyzes the innovation incentives for a firm that produces a vertically differentiated product, in the presence of a competitive fringe that produces a lower-quality product. I find that the relationship between innovation incentives and competition, measured by the difference in quality levels may exhibit an inverted-U-shaped pattern.