Browsing MIT Dept. of Economics Working Papers Series by Subject "incumbents"

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    • Innovation by Entrants and Incumbents 

      Acemoglu, Daron; Cao, Dan (Cambridge, MA: Department of Economics, Massachusetts Institute of Technology, 2010-09-12)
      We extend the basic Schumpeterian endogenous growth model by allowing incumbents to undertake innovations to improve their products, while entrants engage in more “radical” innovations to replace incumbents. Our model ...