Replication data for: Competition as a Discovery Procedure: Schumpeter Meets Hayek in a Model of Innovation
- Bento, Pedro
AbstractI 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.
Is supplement to
DOI: 10.1257/mac.6.3.124 (Text)
Bento, Pedro. “Competition as a Discovery Procedure: Schumpeter Meets Hayek in a Model of Innovation.” American Economic Journal: Macroeconomics 6, no. 3 (July 2014): 124–52. https://doi.org/10.1257/mac.6.3.124.
- ID: 10.1257/mac.6.3.124 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13