Monopolies Stifle Innovation, Hurting Economic Growth, Study Finds
The article explores how different market structures affect how companies invest in research and development (R&D) and grow over time. By analyzing various market scenarios, the researchers found that firms can lower their future costs by investing in R&D today, leading to industry growth. They identified three key factors that influence firms' decisions: competition among firms, knowledge sharing between them, and how these factors impact future market competition. The study shows that these strategic elements play a crucial role in shaping firms' behavior and industry growth.