Plavsic, B. (2016). Intensity of competition and technological progress [Master Thesis, Technische Universität Wien; IHS Wien]. reposiTUm. https://doi.org/10.34726/hss.2016.37476
The empirical phenomenon that in monopolized markets technological improvements are small compared to competitive markets is to be examined. The level of technological advancements has been measured by how big improvement a new technology represents compared to the current best technology used in the market. The relationship between intensity of competition and technological progress has been examined in a model where R&D laboratory exerts effort, which is translated into a new technology, such that its profits are maximized. It is shown that intensity of competition affects the amount of technological progress in a non-monotone way.
