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The Gains From Cooperative R&D With A Concave Technology And Spillovers

Author

Listed:
  • LUCA LAMBERTINI

    (Department of Economics, University of Bologna, Strada Maggiore 45, 40125 Bologna, Italy)

  • GIANPAOLO ROSSINI

    (Department of Economics, University of Bologna, Strada Maggiore 45, 40125 Bologna, Italy)

Abstract

We reassess the respective gains from R&D cooperation and competition in a Cournot duopoly where firms adopt a concave cost-reducing R&D technology. Cooperation, in the form of either a cartel or a joint venture, is always profitable for firms and, contrary to the previous literature on the same topic, (i) no corner solutions emerge and (ii) R&D cooperation is socially superior to independent ventures for any spillover level, provided the cost of R&D financing is sufficiently high.

Suggested Citation

  • Luca Lambertini & Gianpaolo Rossini, 2009. "The Gains From Cooperative R&D With A Concave Technology And Spillovers," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 77-85.
    • Handle: RePEc:wsi:igtrxx:v:11:y:2009:i:01:n:s0219198909002157
    DOI: 10.1142/S0219198909002157
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    Cited by:

    1. Chiara Conti & Marco A. Marini, 2019. "Are you the right partner? R&D agreement as a screening device," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(3), pages 243-264, April.
    2. Buccella, Domenico & Fanti, Luciano & Gori, Luca, 2023. "The disclosure decision game: Subsidies and incentives for R&D activity," Mathematical Social Sciences, Elsevier, vol. 125(C), pages 11-26.
    3. Yasunori Ouchida & Daisaku Goto, 2022. "Strategic non‐use of the government's precommitment ability for emissions taxation: Environmental R&D formation in a Cournot duopoly," Australian Economic Papers, Wiley Blackwell, vol. 61(1), pages 181-206, March.
    4. Yasunori Ouchida & Daisaku Goto, 2012. "What is the socially desirable formation of environmental R&D?," IDEC DP2 Series 2-6, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    5. Rossini Gianpaolo & Vergari Cecilia, 2011. "Input Production Joint Venture," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-50, March.
    6. Ouchida, Yasunori & Goto, Daisaku, 2014. "Environmental Research Joint Ventures and Time-Consistent Emission Tax," Climate Change and Sustainable Development 166524, Fondazione Eni Enrico Mattei (FEEM).
    7. Buccella Domenico & Fanti Luciano & Gori Luca, 2023. "The R&D Investment Decision Game with Product Differentiation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 23(2), pages 601-637, June.
    8. Chiara CONTI, 2013. "Asymmetric information in a duopoly with spillovers: new findings on the effects of RJVs," Departmental Working Papers 2013-04, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Luca Lambertini & Gianpaolo Rossini, 2008. "Is Vertical Disintegration Preferable To Integration When There Is Process R&D?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(5), pages 401-416.
    10. Buccella, Domenico & Fanti, Luciano & Gori, Luca, 2021. "A contribution to the theory of R&D investments," GLO Discussion Paper Series 940, Global Labor Organization (GLO).
    11. Ouchida, Yasunori & Goto, Daisaku, 2016. "Environmental research joint ventures and time-consistent emission tax: Endogenous choice of R&D formation," Economic Modelling, Elsevier, vol. 55(C), pages 179-188.
    12. Yasunori Ouchida & Daisaku Goto, 2016. "Cournot duopoly and environmental R&D under regulator’s precommitment to an emissions tax," Applied Economics Letters, Taylor & Francis Journals, vol. 23(5), pages 324-331, March.

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    More about this item

    Keywords

    Process innovation; R&D cooperation; joint ventures; L13; O31; O38;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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