The evolution of R&D networks

Herbert Dawid and Tim Hellmann
Additional contact information
Herbert Dawid: Center for Mathematical Economics, Bielefeld University

No 467, Center for Mathematical Economics Working Papers from Center for Mathematical Economics, Bielefeld University

Abstract: We study the evolution of R&D networks in a Cournot model where firms may lower marginal costs due to bilateral R&D collaborations. Stochastically stable R&D networks exhibit the dominant group architecture, and, contrary to the existing literature, generically unique predictions about the size of the dominant group can be obtained. This size decreases monotonically with respect to the cost of link formation and there exists a lower bound on the size of the dominant group for non-empty networks. Stochastically stable networks are always inefficient and an increase in linking costs has a non-monotone effect onaverage industry profits.

Keywords: R&D Networks; Stochastic Stability; Oligopoly (search for similar items in EconPapers)
Pages: 30
Date: 2014-04-17
New Economics Papers: this item is included in nep-com, nep-cse, nep-gth, nep-ino, nep-net and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
https://pub.uni-bielefeld.de/download/2672457/2672458 First Version, 2013 (application/pdf)

Related works:
Journal Article: The evolution of R&D networks (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bie:wpaper:467

Access Statistics for this paper

More papers in Center for Mathematical Economics Working Papers from Center for Mathematical Economics, Bielefeld University Contact information at EDIRC.
Bibliographic data for series maintained by Bettina Weingarten ().