Incomplete information and R&D organization

Srobonti Chattopadhyay () and Tarun Kabiraj
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Srobonti Chattopadhyay: Vidyasagar College for Women

Economics Bulletin, 2015, vol. 35, issue 1, 14-20

Abstract: This paper studies the choice of cooperative versus non-cooperative R&D under incomplete information about the innovation size of the rival. It is assumed that the R&D outcome is stochastic and continuously distributed with a given mean and a constant variance. We show that the incentive for cooperative research is smaller the larger is the variance of the R&D outcome, irrespective of the nature of the product market competition (Cournot versus Bertrand).

Keywords: Cooperative R&D; non-cooperative R&D; incomplete information; variance of the research outcome. (search for similar items in EconPapers)
JEL-codes: D4 Q3 (search for similar items in EconPapers)
Date: 2015-03-11
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Related works:
Working Paper: Incomplete information and R&D organization (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-15-00125

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