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Competing R&D joint ventures in Cournot oligopoly with spillovers

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  • Antonio Tesoriere

Abstract

This paper considers competition between R&D cartels, whereby prospective Cournot competitors coordinate their R&D decisions in order to maximize joint profit. It studies how R&D activity, aggregate profit, consumer surplus, and social welfare vary as the number of competing cartels varies. It also compares equilibrium with second best R&D, and discusses the policy implications of the results. The results show that the effects of R&D cartel competition depend on the welfare criterion adopted and on whether there are cooperative synergies or not. Copyright Springer-Verlag Wien 2015

Suggested Citation

  • Antonio Tesoriere, 2015. "Competing R&D joint ventures in Cournot oligopoly with spillovers," Journal of Economics, Springer, vol. 115(3), pages 231-256, July.
    • Handle: RePEc:kap:jeczfn:v:115:y:2015:i:3:p:231-256
    DOI: 10.1007/s00712-014-0417-1
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    References listed on IDEAS

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    Cited by:

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    3. Kyung Hwan Baik & Sang-Kee Kim, 2020. "Observable versus unobservable R&D investments in duopolies," Journal of Economics, Springer, vol. 130(1), pages 37-66, June.

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    More about this item

    Keywords

    R&D cartel competition; R&D spillovers; R&D policy; Endogenous asymmetry; L13; L24; L41;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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