Product innovation and contestability

Arjen van Witteloostuijn

doi:10.1007/BF01329990

Product innovation and contestability

Arjen van Witteloostuijn^*

^*Corresponding author for this work

School of Business and Economics

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

This article deals with the introduction of product innovation in a contestable market model. Investment contestability describes a benchmark case of competition by introducing sunk entry-deterring investment in a free entry framework. Aside from careful price setting, suppliers adopt investment in product quality in order to deter entry. Zero-profit pricing and increased quality point to a partial second-best outcome of market behaviour.

Original language	English
Pages (from-to)	181-196
Number of pages	16
Journal	De Economist
Volume	138
Issue number	2
DOIs	https://doi.org/10.1007/BF01329990
Publication status	Published - 1 Jun 1990

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 17 Partnerships for the Goals

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Product innovation and contestability

Abstract

UN SDGs

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