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Full-Text Articles in Social and Behavioral Sciences
Lobbying And The Power Of Multinational Firms, Armin Schmutzler, Andreas Polk, Adrian Muller
Lobbying And The Power Of Multinational Firms, Armin Schmutzler, Andreas Polk, Adrian Muller
Armin Schmutzler
Can multinational firms exert more power than national firms by influencing politics through lobbying? To answer this question, we analyze the extent of national environmental regulation when policy is determined in a lobbying game between a government and a firm. We compare the resulting equilibrium regulation levels, outputs and welfare in a game with a multinational firm with those in an otherwise identical game with a national firm. For low transportation costs, output and pollution of a national firm is always as least as high as for a multinational; this changes for high transportation costs and intermediate damage parameters. When …
Is Competition Good For Innovation? A Simple Approach To An Unresolved Question, Armin Schmutzler
Is Competition Good For Innovation? A Simple Approach To An Unresolved Question, Armin Schmutzler
Armin Schmutzler
The relation between the intensity of competition and R&D investmenthas received a lot of attention, both in the theoretical and in the empirical literature. Nevertheless, no consensus on the sign of the effect of competition on innovation has emerged. This survey of the literature identifies sources of confusion in the theoretical debate. My discussion is mainly based on a unified model that simplifies the comparison of different results. This model is also applied to show which factors work in favor of a positive relation between competition and innovation.
Competition And Innovation: An Experimental Investigation, Armin Schmutzler, Donja Darai, Dario Sacco
Competition And Innovation: An Experimental Investigation, Armin Schmutzler, Donja Darai, Dario Sacco
Armin Schmutzler
The paper analyzes the effects of more intense competition on firms' investments in process innovations. More intense competition corresponds to an increase in the number of firms or a switch from Cournot to Bertrand competition. We carry out experiments for two-stage games, where R&D investment choices are followed by product market competition. An increase in the number of firms from two to four reduces investments, whereas a switch from Cournot to Bertrand increases investments, even though theory predicts a negative effect in the four-player case. The results arise both in treatments in which both stages are implemented and in treatments …