According to (3.4), an increase in the degree of market power (decrease in a)
increases the stationary-equilibrium amount of research n whenever n is
positive. According to (3.5), given fixed values of the parameters y, A, r, and N,
the stationary-equilibrium amount of research will be positive if and only if
there is at least some minimal degree of market power; that is, if and only if a
is less than the critical value
According to (3.4), an increase in the degree of market power (decrease in a) increases the stationary-equilibrium amount of research n whenever n is positive. According to (3.5), given fixed values of the parameters y, A, r, and N, the stationary-equilibrium amount of research will be positive if and only if there is at least some minimal degree of market power; that is, if and only if a is less than the critical value
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