The Gains From Cooperative R&D With A Concave Technology And Spillovers
AbstractWe 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.
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Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.
Volume (Year): 11 (2009)
Issue (Month): 01 ()
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Other versions of this item:
- S. Baldelli & L. Lambertini, 2004. "The gains from cooperative R&D with a concave technology and spillovers," Working Papers 510, Dipartimento Scienze Economiche, Universita' di Bologna.
- L. Lambertini & G. Rossini, 2004. "The gains from cooperative R&D with a concave technology and spillovers," Working Papers 508, Dipartimento Scienze Economiche, Universita' di Bologna.
- 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 - - Business Economics
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