Equilibrium and Optimal Size of a Research Joint Venture in an Oligopoly with Spillovers
Journal of Industrial Economics, 1995, vol. 43, issue 2, 209-26
This paper analyzes a simple oligopoly model with information spillovers. Firms spend on R&D to affect their costs of production. The main finding is that, depending on the magnitude of the spillover, the market may not provide enough incentives for the optimum degree of cooperation to take place. It is shown that the equilibrium size of a research joint venture is usually less than the optimum size, which requires all firms to participate in the research joint venture. The policy implications of this result are that there should be encouragement for firms competing in high-technology industries to form industry-wide cooperative agreements. Copyright 1995 by Blackwell Publishing Ltd.
References: Add references at CitEc
Citations: View citations in EconPapers (76) Track citations by RSS feed
Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819950 ... 0.CO%3B2-W&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:43:y:1995:i:2:p:209-26
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821
Access Statistics for this article
Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven
More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().