英文摘要 |
We examine the possible superiority of Cournot versus Bertrand competition in the context of product innovations. We show a nonmonotone relation between the intensity of competition and incentives for innovations, and find conditions under which both consumer surplus and social welfare are higher under Cournot competition, whereas industry profits may be lower. Regarding the forces behind the result that social welfare is higher under Cournot competition, we also present new insights. |