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Entry-inducing technology adoption

Authors
Journal
Economics Letters
0165-1765
Publisher
Elsevier
Publication Date
Volume
42
Identifiers
DOI: 10.1016/0165-1765(93)90072-k

Abstract

Abstract When spillovers are important, potential entry may lead incumbents to refrain from implementing costless improvements in production technology or working practices. Thus it is concluded that endogenous changes in market structure may exacerbate disincentives to do R&D.

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