Too much R&D? - Vertical differntiation in a model of monopolistic competition
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Chronological data
Date of first publication2007-09-10
Date of publication in PubData 2024-08-23
Language of the resource
English
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Abstract
This paper discusses a model of vertical and horizontal product differentiation within the Dixit-Stiglitz framework of monopolistic competition. Firms compete not only in prices and horizontal attributes of their products, but also in the quality that can be controlled by R&D activities. Based upon the results of a general equilibrium model, intra-sectoral trade and the welfare implications of public intervention in terms of research promotion are considered. The analysis involves a numerical application to ten basic European industries.
Keywords
Monopoly; Competition; Product Differentiation; Monopol; Produktdifferenzierung; Wettbewerb
Series title
Number of the series contribution
59