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Economic theory says that a monopolist should have far less incentive to invest in creating innovations than a firm in a competitive environment: experience suggests otherwise.
We apply a real options-based approach to assess the impact of climate change policy in the form of a constant or growing price floor on investment decisions of a single firm in a competitive environment.
The objective of this paper is to investigate the degree of the customer involvement in final assembly (CIFA) in establishing a do-it-yourself (DIY) product design in order to achieve cost minimization of the incumbent firm in a competitive environment.
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This paper demonstrates that a proper design of environmental-regulation pricing strategies is able to promote Extended Product Responsibility for green supply chain firms in a competitive market.
As Holmström noted in the paper, current salaries do not necessarily neatly match employee performance; instead, firms may reward current performance with higher salaries to prevent employees from switching firms in a competitive labor market.
The more they look like any other firm operating in a competitive market, the easier it will be to turn a deaf ear to special pleading.
Their roots can be traced to substantial state participation in opaque processes; poor contract design; inadequate reregulation; and insufficient deregulation and corporate governance reform that increase the cost of capital and limit firm restructuring in a competitive environment.
In each case an industry leader was seeking to acquire a firm in a weak competitive position, fighting for survival.
Wu ([2010]) also discussed that the health of a firm in a highly competitive business environment is dependent upon its capability of achieving profit and financial solvency.
For example, a firm with a 40percentt output share in an industry with a three-firm concentration index of 0.5 employs on average 5.7percentt (0.078×0.5 - 0.131×0.4 - 0.216×0.5×0.4 = -0.057) fewer immigrants than a (hypothetical) firm in a perfectly competitive industry (i.e., infinitely small output share in an industry where the concentration index is zero).
Tourism firms operate in a competitive sector where innovating is often a condition for survival.
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