Quality-improving alliances in differentiated oligopoly
AbstractWe study rival firms' incentives in quality-improving Research and Development (R&D) networks. The analysis stresses the role of free riding associated to collaboration and three major consequences emerge: R&D efforts decrease with the number of partners, networks of alliances are over-connected as compared to the social optimum and the profitmaximizing number of alliances is possibly non monotonic (decreasing then increasing) with respect to inverse measure of product differentiation.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Industrial Organization.
Volume (Year): 24 (2006)
Issue (Month): 3 (May)
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Web page: http://www.elsevier.com/locate/inca/505551
Other versions of this item:
- Frédéric Deroian & Frédéric Gannon, 2006. "Quality-improving alliances in differentiated oligopoly," Post-Print halshs-00084891, HAL.
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