Symmetric research joint ventures: Cooperative substitutes and complements
AbstractWe introduce the concept of cooperative substitutes and complements, and use it to throw light on the conditions for a research joint venture to choose equal levels of R&D by all member firms. We show that the second-order conditions for a symmetric optimum take a particularly simple form, ruling out both excessive cooperative substitutability and excessive cooperative complementarity, and nesting conditions already derived in the literature. Finally we explore the implications of our results for the comparison between research joint ventures and a non-cooperative equilibrium.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Industrial Organization.
Volume (Year): 23 (2005)
Issue (Month): 5-6 (June)
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Web page: http://www.elsevier.com/locate/inca/505551
Other versions of this item:
- Dermot Leahy & J Peter Neary, 2004. "Symmetric Research Joint Ventures - Cooperative Substitutes and Complements," Working Papers 200417, School Of Economics, University College Dublin.
- Leahy, Dermot & Neary, J Peter, 2004. "Symmetrical Research Joint Ventures: Cooperative Substitutes and Complements," CEPR Discussion Papers 4497, C.E.P.R. Discussion Papers.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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