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Beat'Em Or Join'Em? Export Subsidies Versus International Research Joint Ventures in Oligopolistic Markets

J. Peter Neary and Paul O'Sullivan ()

Working Papers from College Dublin, Department of Political Economy-

Abstract: This paper compares adversarial with cooperative industrial and trade policies in a dynamic oligopoly game in which a home and foreign firm compete in R&D and output and, because of spillovers, each firm benefits from the other's R&D. When the government can commit to an export subsidy, such a policy raises welfare relative to cooperation, except when R&D is highly effective and spillovers are near-complete.

Keywords: RESEARCH AND DEVELOPMENT; TRADE POLICY; EXPORTS; SUBSIDIES; OLIGOPOLIES (search for similar items in EconPapers)
JEL-codes: D43 H20 O32 (search for similar items in EconPapers)
Pages: 32 pages
Date: 1998
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Beat 'em or Join 'em? Export Subsidies versus International Research Joint Ventures in Oligopolistic Markets (1999) Downloads
Working Paper: Beat Em or Join Em: Export Subsidies versus International Research Joint Ventures in Oligopolistic Markets (1998) Downloads
Working Paper: Beat 'Em or Join 'Em?: Export Subsidies Versus International Research Joint Ventures in Oligopolistic Markets (1998) Downloads
Working Paper: Beat 'em or join 'em: export subsidies versus international research joint ventures in oligopolistic markets (1998) Downloads
Working Paper: Beat 'em or Join 'em?: Export Subsidies Versus International Research Joint Ventures in Oligopolistic Markets (1997) Downloads
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