Competition policy and market leaders

Kresimir Zigic () and Ilir Maçi

Economic Modelling, 2011, vol. 28, issue 3, 1042-1049

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 be harmful for society.

Keywords: Market; leaders; Competition; policy; Innovation; K21; L11; L13; L16 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Competition Policy and Market Leaders (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:3:p:1042-1049

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