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

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  • 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.

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Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

Volume (Year): 11 (2009)
Issue (Month): 01 ()
Pages: 77-85

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Handle: RePEc:wsi:igtrxx:v:11:y:2009:i:01:p:77-85

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Related research

Keywords: Process innovation; R&D cooperation; joint ventures; L13; O31; O38;

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  1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
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Cited by:
  1. Yasunori Ouchida & Daisaku Goto, 2014. "Environmental Research Joint Ventures and Time-Consistent Emission Tax," Working Papers 2014.35, Fondazione Eni Enrico Mattei.

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