Chapter

The Co‐Ordination of Competitive Investments

G. B. Richardson

in Information and Investment

Second edition

Published in print July 1997 | ISBN: 9780198292432
Published online November 2003 | e-ISBN: 9780191596810 | DOI: http://dx.doi.org/10.1093/0198292430.003.0003
 The Co‐Ordination of Competitive Investments

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A firm's investment will prove profitable only if aggregate competitive investment is not excessive and complementary investments are sufficient. This chapter examines the factors necessary to ensure the first of these conditions: these may include differences among firms in their awareness of profit opportunities and in their ability to respond to them, connections between sellers and buyers, which give a degree of stability to market shares, and some measure of inter‐firm collusion.

Keywords: capabilities; competitive investments; coordination; frictions; goodwill; imperfections; implicit collusion

Chapter.  8787 words. 

Subjects: Microeconomics

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