Investment Efficiency and Product Market Competition
研究了产品市场竞争如何影响企业信息获取和投资效率，通过模型和实证发现竞争加剧会导致信息获取减少和投资效率下降，而集中行业投资更高效。
Does more competition lead to more information production and greater investment efficiency? This question is largely unexplored in the finance literature. This article provides both a model and a series of extensive empirical tests. The model features a 2-stage Bayesian game in differentiated products market competition. We find that competition causes firms to acquire less information and investments to become more inefficient relative to a first-best case with the same market structure. Empirically, the panel regression analysis provides strong support for the theory and shows that investment is more efficient in concentrated industries.