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R&D With Spillovers: Monopoly Versus Noncooperative And Cooperative Duopoly

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  • ANNA STEPANOVA
  • ANTONIO TESORIERE
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    Abstract

    This paper compares industry profit and R&D propensity for a duopoly conducting either noncooperative or cooperative R&D and a monopoly, using two different basic models of strategic R&D. One postulates spillovers in R&D inputs and predicts that equilibrium joint profit and R&D levels are always larger under monopoly. The other postulates spillovers in R&D outputs and sometimes predicts that joint profit and R&D levels are larger under either of the alternative scenarios. In addition, unlike input spillovers, spillovers in R&D outputs sometimes exert a positive effect on both effective and private noncooperative R&D levels.

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    File URL: http://hdl.handle.net/10.1111/j.1467-9957.2010.02185.x
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    Bibliographic Info

    Article provided by University of Manchester in its journal The Manchester School.

    Volume (Year): 79 (2011)
    Issue (Month): 1 (January)
    Pages: 125-144

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    Handle: RePEc:bla:manchs:v:79:y:2011:i:1:p:125-144

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    Cited by:
    1. Stuart McDonald & Joanna Poyago-Theotoky, 2014. "Green Technology and Optimal Emissions Taxation," Working Paper Series 07_14, The Rimini Centre for Economic Analysis.

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