Strategic R&D policy under multiproduct duopoly and quality-price competition

Kyungmin Kim

Applied Economics Letters, 2019, vol. 26, issue 16, 1349-1353

Abstract: This paper analyses strategic R&D policy in a third-country trade model where multiproduct firms with different production technologies compete in a vertically differentiated market. I show that the optimal R&D policies for both countries are subsidies when the product market is under price competition.

Date: 2019
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DOI: 10.1080/13504851.2018.1558338

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