Competition as a Discovery Procedure: Schumpeter Meets Hayek in a Model of Innovation

• 成果类型: Article
• 署名作者: Bento, Pedro
• 署名单位: West Virginia University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.6.3.124
• 发表日期: 2014
• 页码: 124-152
• 关键词: MARKET-STRUCTURE; GROWTH

摘要

incorporate an insight of Friedrich Hayek-that competition allows a thousand flowers to bloom, and discovers the best among them-into a model of Schumpeterian innovation. Firms face uncertainty about the optimal direction of innovation, so more innovations implies a higher expected value of the best innovation. The model accounts for two seemingly contradictory relationships reported in recent empirical studies-a positive relationship between competition and industry-level productivity growth, and an inverted-U relationship between competition and firm-level innovation. Notwithstanding the positive relationship between competition and growth, I find antitrust policy reduces industry-level growth. (JEL B52, D83, G34, K21, L11, L12, O31)