Multinational Firms Gain Competitive Edge Through Strategic R&D Investments
The study compared two ways companies compete, like how they set prices or quantities, in a global market where products are slightly different from each other. They also looked at how investing in developing new production techniques affects these strategies. The researchers discovered that when companies put money into improving their production methods, it can influence whether they decide to compete by charging lower prices or by producing more goods. This choice can vary depending on how different their products are and where they sell them. The study shows that how companies decide to act can affect not only their profits but also the market as a whole.