{"product_id":"9783540425281","title":"Lecture Notes in Economics and Mathematical Systems","description":"\u003ch1\u003eLecture Notes in Economics and Mathematical Systems\u003c\/h1\u003e \u003ch2\u003eHornung, Dietmar\u003c\/h2\u003e \u003cp\u003eIn the 1990s, growth theory has incorporated imperfect competition in its investigations. This innovation has proven to be seminal: Cleviating from growth models with perfect competition, the new framework featured forward­ looking entrepreneurs. Firms maximize profits intertemporarily, i. e. their in­ vestment leads to instantaneous sunk costs and offers flows of future profits. Firms finance this investment by launching shares. The capital market is per­ fectly competitive, implying that the return on a share is equal to the return on a bond. As opposed to the capital market, the goods market is imperfectly competitive. As a result of investment, firms enjoy market power. That is, firms may acquire the capability to provide a product that is differentiated in, e. g. , styling, technology, accessibility, or reputation. The launch of a dif­ ferentiated product allows to capture a market niche, and successful firms may price above marginal cost. The resulting profit flows are channelled to the firms' shareholders. The introduction of monopolistic competition into growth theory is valuable: real world economies may be portrayed rather by such an imperfect competition framework than by a perfect competition approach. Starting with Romer (1990), in growth theory, modeling of imperfect competition has been notoriously bound to a focus on the impact of research and development (R\u0026amp;D) on economic growth. In the existing literature, growth-affecting investment is restricted to R\u0026amp;D investment.\u003c\/p\u003e \u003ch3\u003eDetails\u003c\/h3\u003e \u003cp\u003ePublished by: Springer\u003c\/p\u003e \u003cp\u003ePublication Date: 2001-09-11\u003c\/p\u003e \u003cp\u003eFormat: Paperback\u003c\/p\u003e \u003cp\u003eISBN-13: 9783540425281\u003c\/p\u003e \u003cp\u003eDOI: 10.1007\/978-3-642-51718-1\u003c\/p\u003e \u003cp\u003eDimensions: cm xcm\u003c\/p\u003e \u003cp\u003ePages: 196\u003c\/p\u003e ","brand":"Springer Berlin Heidelberg","offers":[{"title":"Default Title","offer_id":45378858778764,"sku":"9783540425281","price":49.49,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0710\/9545\/1788\/files\/9783540425281.jpg?v=1774028466","url":"https:\/\/fh90cf-fv.myshopify.com\/products\/9783540425281","provider":"Late Knight Books and Services, LLC","version":"1.0","type":"link"}