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The Causal Effects of Competition on Innovation: Experimental Evidence

Philippe Aghion, Stefan Bechtold, Lea Cassar and Holger Herz.

in The Journal of Law, Economics, and Organization

May 2018; p ublished online March 2018 .

Journal Article. Subjects: Design of Experiments; Market Structure, Firm Strategy, and Market Performance; Technological Change; Research and Development. 12778 words.


We design two laboratory experiments to analyze the causal effects of competition on step-by-step innovation. Innovations result from costly R&D...