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Does AMD spur Intel to innovate more?

Brett Gordon () and Ronald Goettler
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Ronald Goettler: University of Chicago

No 151, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: present. Counterfactuals reveal that consumer surplus can actually increase as the market moves toward monopoly, which suggests policymakers ought to consider the dynamic trade-off of lower current consumer surplus from higher prices for higher future surplus from more innovation. Comparative statics reveal that competition does induce higher innovation if consumers have sufficiently high preferences for quality and low price sensitivity.

Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:red:sed010:151

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