Growth, Competition and Welfare
构建了一个企业数量、利润率和创新率均为内生的模型，分析竞争对增长和福利的影响，发现更激烈的价格竞争会减少企业数量和产品多样性，但会扩大企业规模并提高创新率。
The impact of competition on growth and welfare is analysed by developing a model in which the number of firms, profit margins and innovation rates are endogenous. Different regimes of oligopolistic competition are distinguished. The tougher the price competition, the lower the profit margins for a given rate of concentration. This reduces the number of firms and product variety in a free entry equilibrium. Consequently, tougher competition implies larger firm size and higher rates of innovation since new technologies can be applied in a larger market. Oligopolistic pricing leads to underinvestment in firm‐specific knowledge, even if inter‐firm knowledge spillovers are neglected.