Effects of One‐Way Spillovers on Market Shares, Industry Price, Welfare, and R & D Cooperation
Rabah Amir () and
John Wooders
Journal of Economics & Management Strategy, 1999, vol. 8, issue 2, 223-249
Abstract:
With one‐way spillovers, the standard symmetric two‐period R&D model leads to an asymmetric equilibrium only, with endogeneous innovator and imitator roles. We show how R&D decisions and measures of firm heterogeneity—market shares, R&D shares, and profits—depend on spillovers and on R&D costs. While a joint lab always improves on consumer welfare, it yields higher profits, cost reductions, and social welfare only under extra assumptions, beyond those required with multidirectional spillovers. Finally, the novel issue of optimal R&D cartels is addressed. We show an optimal R&D cartel may seek to minimize R&D spillovers between its members.
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49)
Downloads: (external link)
https://doi.org/10.1111/j.1430-9134.1999.00223.x
Related works:
Working Paper: Effects of One-way Spillovers on Market Shares, Industry Price, Welfare, and R&D Cooperation (1998)
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:bla:jemstr:v:8:y:1999:i:2:p:223-249
Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1
Access Statistics for this article
More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().