Cooperative and Noncooperative R&D in Two-Sided Markets

Marc Bourreau and Verdier Marianne ()
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Verdier Marianne: EQUIPPE, Faculté des Sciences Economiques et Sociales de Lille and CERNA, Ecole des Mines de Paris, Paris

Review of Network Economics, 2014, vol. 13, issue 2, 175-190

Abstract: In this paper, we analyze the impact of cooperation on R&D investments in a two-sided market, where platforms compete in quantities. We show that if indirect externalities are of a moderate magnitude, the threshold degree of spillovers above which cooperation spurs R&D investments and enhances social welfare increases with the degree of externalities. If indirect externalities are of a strong magnitude, cooperation can also be beneficial in terms of welfare for low degrees of spillovers.

Keywords: R&D cooperation; spillovers; two-sided markets (search for similar items in EconPapers)
JEL-codes: E42 L1 O31 (search for similar items in EconPapers)
Date: 2014
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Working Paper: Cooperative and Noncooperative R&D in Two-Sided Markets (2014)
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DOI: 10.1515/rne-2013-0123

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