Competition Policy and Market Leaders

Ilir Maçi and Kresimir Zigic ()

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

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. (search for similar items in EconPapers)
JEL-codes: F12 F13 K21 L11 L13 L16 (search for similar items in EconPapers)
Date: 2008-11
New Economics Papers: this item is included in nep-com, nep-cse, nep-ind, nep-ino, nep-ipr, nep-pr~, nep-law, nep-mic and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.cerge-ei.cz/pdf/wp/Wp375.pdf (application/pdf)

Related works:
Journal Article: Competition policy and market leaders (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp375

Access Statistics for this paper

More papers in CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Vasiljevova ().