Too much R&D? - Vertical differntiation in a model of monopolistic competition
- 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.
Author: | Jan KranichGND |
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URL: | https://pub-data.leuphana.de/frontdoor/index/index/docId/491 |
Document Type: | ResearchPaper |
Language: | English |
Year of Completion: | 2007 |
Date of Publication (online): | 2007/09/10 |
Release Date: | 2007/09/10 |
Tag: | Monopolistic Competition; Product Differentiation; R&D |
GND Keyword: | Forschung und Entwicklung; Monopolistische Konkurrenz; Produktdifferenzierung |
Institutes: | Universität / Frühere Fachbereiche |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |