Advanced Search
MyIDEAS: Login to save this article or follow this journal

The monopolist's optimal R&D portfolio

Contents:

Author Info

  • Luca Lambertini

Abstract

The monopolist's incentives towards product and process innovations are evaluated against the social optimum. The main findings are that (i) the incentive to invest in cost-reducing R&D is inversely related to the number of varieties being supplied at equilibrium, under both regimes; (ii) distortions obtain under monopoly, w.r.t. both the number of varieties and the technology. With substitutes, the monopolist's product range is smaller than under social planning, while with complements the product range is the same under both regimes. For any given number of goods, the monopolist operates at a higher marginal cost than the planner does. Copyright 2003, Oxford University Press.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 55 (2003)
Issue (Month): 4 (October)
Pages: 561-578

as in new window
Handle: RePEc:oup:oxecpp:v:55:y:2003:i:4:p:561-578

Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Email:
Web page: http://oep.oupjournals.org/

Order Information:
Web: http://www.oup.co.uk/journals

Related research

Keywords:

Other versions of this item:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sudipto Bhattacharya and Dilip Mookherhee., 1984. "Portfolio Choice in Research and Development," Research Program in Finance Working Papers, University of California at Berkeley 147, University of California at Berkeley.
  2. Klemperer, Paul, 1992. "Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive," American Economic Review, American Economic Association, American Economic Association, vol. 82(4), pages 740-55, September.
  3. Jaskold Gabszewicz, Jean & Shaked, Avner & Sutton, John & Thisse, Jacques-Francois, 1986. "Segmenting the market: The monopolist's optimal product mix," Journal of Economic Theory, Elsevier, Elsevier, vol. 39(2), pages 273-289, August.
  4. James Brander & Jonathan Eaton, 1982. "Product Line Rivalry," Working Papers, Queen's University, Department of Economics 519, Queen's University, Department of Economics.
  5. MacDonald, Glenn M & Slivinski, Alan, 1987. "The Simple Analytics of Competitive Equilibrium with Multiproduct Firms," American Economic Review, American Economic Association, American Economic Association, vol. 77(5), pages 941-53, December.
  6. Champsaur, Paul & Rochet, Jean-Charles, 1989. "Multiproduct Duopolists," Econometrica, Econometric Society, Econometric Society, vol. 57(3), pages 533-57, May.
  7. Anderson, Simon P & de Palma, Andre, 1992. "Multiproduct Firms: A Nested Logit Approach," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 40(3), pages 261-76, September.
  8. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, Elsevier, vol. 18(2), pages 301-317, August.
  9. Wernerfelt, Birger, 1986. "Product Line Rivalry: Note," American Economic Review, American Economic Association, American Economic Association, vol. 76(4), pages 842-44, September.
  10. Klemperer, P., 1992. "Competition when Consumers Have Switching Costs: An Overview," Economics Series Working Papers, University of Oxford, Department of Economics 99142, University of Oxford, Department of Economics.
  11. Bonanno, Giacomo, 1987. "Location Choice, Product Proliferation and Entry Deterrence," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 54(1), pages 37-45, January.
  12. Lambertini, Luca & Orsini, Raimondello, 2000. "Process and product innovation in a vertically differentiated monopoly," Economics Letters, Elsevier, Elsevier, vol. 68(3), pages 333-337, September.
  13. Eric Maskin & John Riley, 1984. "Monopoly with Incomplete Information," RAND Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 15(2), pages 171-196, Summer.
  14. Rosenkranz, Stephanie, 1996. "Simultaneous Choice of Process and Product Innovation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1321, C.E.P.R. Discussion Papers.
  15. Avinash Dixit, 1979. "A Model of Duopoly Suggesting a Theory of Entry Barriers," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 10(1), pages 20-32, Spring.
  16. Paul Klemperer & A. Jorge Padilla, 1997. "Do Firms' Product Lines Include Too Many Varieties?," RAND Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 28(3), pages 472-488, Autumn.
  17. Panzar, John C., 1989. "Technological determinants of firm and industry structure," Handbook of Industrial Organization, Elsevier, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 1, pages 3-59 Elsevier.
  18. De Fraja, Giovanni, 1994. "A General Characterization of Multiproduct Cournot Competition," Bulletin of Economic Research, Wiley Blackwell, Wiley Blackwell, vol. 46(2), pages 171-83, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. L. Lambertini & R. Orsini, 2014. "Process Innovation and Product Quality Improvement in a Dynamic Monopoly," Working Papers, Dipartimento Scienze Economiche, Universita' di Bologna wp926, Dipartimento Scienze Economiche, Universita' di Bologna.
  2. Andrea Mantovani, 2006. "Complementarity between product and process innovation in a monopoly setting," Economics of Innovation and New Technology, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(3), pages 219-234.
  3. Saha, Souresh, 2014. "Firm's objective function and product and process R&D," Economic Modelling, Elsevier, Elsevier, vol. 36(C), pages 484-494.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:55:y:2003:i:4:p:561-578. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.