Unilateral Technology Sharing among Competitors in Markets with Heterogeneous Consumers

Shohei Yoshida () and Pan Cong ()
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Pan Cong: Institute of Social and Economic Research, Osaka University, Mihogaoka 6-1, Ibaraki, Osaka567-0047, Japan

The B.E. Journal of Economic Analysis & Policy, 2017, vol. 17, issue 4, 6

Abstract: This paper explains why some firms share their technology with competitors. We consider a Hotelling market where duopolists sell products with different qualities. This market consists of heterogeneous consumers, comprising three groups in terms of their valuations of product quality. We show that when consumers’ preferences for product quality are sufficiently heterogeneous, a high-quality firm benefits from sharing quality-enhancing technology.

Keywords: technology sharing; competitor collaboration; consumer heterogeneity (search for similar items in EconPapers)
JEL-codes: L24 L41 M21 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1515/bejeap-2016-0173

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