Economics, Econometrics and Finance
3 years ago

Market integration sparks innovation reversal, benefiting both domestic and foreign firms.

2 views
SSRN Electronic Journal
Innovation Incentives in an Integrated Market with Vertical Product Differentiation
Rajat Acharyya, Prabal Roy Chowdhury

Paper Summary

Market integration can lead to more innovation. By studying how different products are in a market, researchers found that being quick to respond to integration can help firms catch up or even surpass competitors. This can benefit both domestic and foreign companies, making integration good for everyone.

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