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Strategic R&D policy under vertically differentiated oligopoly

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  • Jee-Hyeong Park
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    Abstract

    In this paper strategic R&D policy is analysed, where a firm and a firm compete in a third country with vertically differentiated ( and ) products. If the product market is under price competition, the high-tech (low-tech) firm's government has an incentive to tax (subsidize) its domestic firm's activities. If the product market is under quantity competition, the results are opposite: an R&D subsidy (tax) incentive for the high-tech (low-tech) firm's government; and the high-tech firm's government in the R&D policy game, in contrast to the standard prisoner's dilemma result of the R&D policy literature.

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    Bibliographic Info

    Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

    Volume (Year): 34 (2001)
    Issue (Month): 4 (November)
    Pages: 967-987

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    Handle: RePEc:cje:issued:v:34:y:2001:i:4:p:967-987

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    Cited by:
    1. Jinji, Naoto & Toshimitsu, Tsuyoshi, 2013. "Strategic R&D policy in a quality-differentiated industry with three exporting countries," Japan and the World Economy, Elsevier, vol. 28(C), pages 132-142.
    2. Jan Haaland & Hans Jarle Kind, 2006. "Cooperative and Non-Cooperative R&D Policy in an Economic Union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 720-745, December.

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