Strategic R&D policy under vertically differentiated oligopoly
AbstractIn 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 InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 34 (2001)
Issue (Month): 4 (November)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
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- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- Haaland, Jan I. & Kind, Hans Jarle, 2004.
"Cooperative and Non-Cooperative R&D Policy in an Economic Union,"
CEPR Discussion Papers
4185, C.E.P.R. Discussion Papers.
- 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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