Effects of One-way Spillovers on Market Shares, Industry Price, Welfare, and R&D Cooperation
Rabah Amir () and
John Wooders
No 1998-09, CIE Discussion Papers from University of Copenhagen. Department of Economics. Centre for Industrial Economics
Abstract:
With one-way spillovers, the standard symmetric two-period R&D model leads to an asymmetric equilibrium only, with endogenous innovator and imitator. We show how R&D decisions and measures of firm heterogeneity - market shares, R&D shares, and profits - depend on spillovers and on R&D costs. While a joint lab always improves on consumer welfare, it yields higher profits, cost reductions and social welfare only under extra assumptions, beyond those required with multi-directional spillovers. Finally, the novel issue of optimal R&D cartels (with an endogenous spillover parameter) is addressed. In particular, the latter can be zero under some conditions.
Keywords: strategic R&D; Cournot duopoly; one-Way spillovers; endogenous heterogenous; research Joint ventures (search for similar items in EconPapers)
JEL-codes: D43 L13 O31 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1998-02
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Citations: View citations in EconPapers (2)
Published in: Journal of Economics & Management Strategy, 8(2) 1999, 223-249
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Journal Article: Effects of One‐Way Spillovers on Market Shares, Industry Price, Welfare, and R & D Cooperation (1999) 
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuieci:1998-09
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