Technological Leadership and Persistence of Monopoly under Endogenous Entry : Static versus Dynamic Analysis Cerge-ei

  • Eugen Ková, Viatcheslav Vinogradov Krešimir Žigi
  • Published 2009
We build a dynamic oligopoly model with endogenous entry in which a particular firm (leader) invests in an innovation process, facing the subsequent entry of other firms (followers). We identify conditions that make it optimal for the leader in the initial oligopoly situation to undertake pre-emptive R&D investment (strategic predation) eventually resulting… CONTINUE READING