Investment Efficiency and Product Market Competition

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منابع مشابه

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How does competition in a firm's product market affect the behavior of its stock? We examine this question in a noisy rational expectations economy in which firms operate under monopolistic competition. Production is subject to productivity shocks and requires capital, raised on a perfectly competitive equity market. Investors observe firms' past profits and collect private information about th...

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In spatial competition, public infrastructure plays a crucial role in determining product market outcomes. In our model, consideration of infrastructure’s impact on the product market drives the voting behavior of consumers in their dual role as voter/taxpayers. The spatial heterogeneity of consumers produces conflicting political interests and in many cases inefficient outcomes. However across...

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Policy makers in Europe have been concerned that lack of product market competition have led productivity to lag behind the US. Theoretical models are ambiguous about the direction of the effect that product market competition should have on productivity. On the one hand increasing competition lowers firm’s profits and thus reduces incentives to exert effort (the Schumpeterian effect), on the o...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2015

ISSN: 1556-5068

DOI: 10.2139/ssrn.2633437