Download This PaperCompetition Policy and Market Leaders
Center for Economic Research and Graduate Education-Economics Institute Working Paper No. 375
34 Pages Posted: 5 Oct 2009
Date Written: November 1, 2008
Abstract
We study the potential loss in social welfare and changes in incentives to invest in R&D that result when the market leading firm is deprived of its position. We show that under plausible assumptions like free entry or repeated market interactions there is a social value of market leadership and its mechanical removal by means of competition policy is likely to me harmful for society.
Keywords: Market Leaders, Competition Policy, Innovation
JEL Classification: F12, F13, L11, L13, L16, K21
Suggested Citation: Suggested Citation
Maci, Ilir and Žigić, Krešimir, Competition Policy and Market Leaders (November 1, 2008). Center for Economic Research and Graduate Education-Economics Institute Working Paper No. 375, Available at SSRN: https://ssrn.com/abstract=1483201 or http://dx.doi.org/10.2139/ssrn.1483201
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