The Relationship between Market Structure and Innovation in Industry Equilibrium: A Case Study of the Global Automobile Industry
通过估计动态博弈模型，研究了全球汽车行业中市场结构与创新的均衡关系，发现创新与自身质量呈倒U型，受竞争对手质量和质量分散度影响，且进入会降低在位者创新但提高总创新。
We specify and estimate a dynamic game to study the equilibrium relationship between market structure and innovation in the automobile industry. The quality of each firm’s product for the average consumer, the key state variable, is modeled as stochastically increasing in innovation, the dynamic control, which is proxied by patent applications. Equilibrium innovation is a function of market structure, the vector of quality levels of all active firms, and the cost of R&D. Our main findings are as follows: (a) optimal innovation has an inverted-U shape in own quality; (b) holding own quality constant, innovation is declining in average rival quality but increasing in quality dispersion; and (c) following entry, each incumbent’s innovation declines, but aggregate innovation increases in most market structures. These findings are broadly consistent with the Schumpeterian hypothesis that market power leads to more innovation.