R&D and Production Behavior of Asymmetric Duopoly Subject to Knowledge Spillovers
Joseph Plasmans ()
No 287, CESifo Working Paper Series from CESifo
Abstract:
We construct an asymmetri c duopolistic R&D and production behavior model subject to knowledge spillovers. This model is an extension to the symmetric model of d'Aspremont and Jacquemin (A&J (1988)) and aims to determine the cooperative and non-cooperative R&D strategies for two agents of different size. The paper concludes that the introduction of asymmetry into the A&J (1988) model leads to different R&D expenditures and production decisions made by the firms. Simulations show that the bigger agent has larger R&D expenditures and higher output. If firms choose the monopoly collusion or the welfare-maximizing strategy, the optimal solution implies that R&D is conducted asymmetrically by both agents, but that production is conducted only by the largest agent.
Keywords: Innovation; R&D; spillovers; cooperation (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (4)
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Working Paper: R&D and production behavior of asymmetric duopoly subject to knowledge spillover (2000) 
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_287
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