In the standard two-stage framework of R&D/product market competition, this paper provides a performance comparison between monopoly and the cartelized research joint venture, using two well-known models based on different versions of the R&D spillover process. According to the model with a wider scope of application, monopoly always leads to a higher propensity for R&D and, when R&D costs are low, to the best overall market performance. The results also allow for a comparison between the two underlying models of strategic R&D. Copyright 2002 by Blackwell Publishers Ltd and The Victoria University of Manchester
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Article provided by University of Manchester in its journal Manchester School.
Volume (Year): 70 (2002) Issue (Month): 1 (January) Pages: 88-100 Download reference. The following formats are available: HTML
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Paper
AMIR, Rabah & NANNERUP, Niels & STEPANOVA, Anna & EGUIAZAROVA, Elina, 2001.
"Monopoly versus R&D-integrated duopoly,"
CORE Discussion Papers
2001051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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