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  • In this article, we show that different profits due to different intensity of competition can influence innovation decisions of otherwise identical firms. We propose a model of innovation decisions in which, under certain conditions, firms with very high and very low profits can be expected to innovate less than firms with moderate profits, which is consistent with the hypothesis of the inverted-U relationship between competition and innovation.
  • In this article, we show that different profits due to different intensity of competition can influence innovation decisions of otherwise identical firms. We propose a model of innovation decisions in which, under certain conditions, firms with very high and very low profits can be expected to innovate less than firms with moderate profits, which is consistent with the hypothesis of the inverted-U relationship between competition and innovation. (en)
Title
  • Competition and Innovation: In Support of the Inverted-U Relationship
  • Competition and Innovation: In Support of the Inverted-U Relationship (en)
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  • Competition and Innovation: In Support of the Inverted-U Relationship
  • Competition and Innovation: In Support of the Inverted-U Relationship (en)
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  • RIV/00216224:14560/09:00037072!RIV10-MSM-14560___
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  • S
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  • 307847
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  • RIV/00216224:14560/09:00037072
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  • Innovation; Competition; Prospect Theory; Inverted-U Relationship (en)
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http://linked.open...ontrolniKodProRIV
  • [867C443826E2]
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  • Prague
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  • Prague
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  • Mathematical Methods in Economics 2009
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  • Krčál, Ondřej
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number of pages
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  • Česká zemědělská univerzita v Praze
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  • 978-80-213-1963-9
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  • 14560
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