Acceso usuarios
Walter Elberfeld
In this note I extend the technology choice model of Mills and Smith [Int. J. Ind. Org. 14 (1996) 317–329] by analyzing an industry with more than two firms. I show that heterogeneous firms can arise, as in the duopoly case. However, the welfare implications are not robust. In particular, it is not necessarily the case that the market produces too much homogeneity. When more than two firms are active, the business stealing effect creates a bias towards overinvestment.
