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Innovation Activity In A Mixed Oligopoly: The Role Of Co-Operatives

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  • Giannakas, Konstantinos
  • Fulton, Murray E.
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    Abstract

    This paper develops a sequential game theoretic model of heterogeneous producers to examine the effect of co-operative involvement on innovation activity in the agricultural input-supplying sector. Analytical results show that the co-operative involvement in R&D can be welfare enhancing and, thus, socially desirable. The presence of the co-op can increase the arrival rate of innovations and productivity growth while reducing the prices of agricultural inputs. The effectiveness of the co-op is determined by the size of R&D costs.

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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2002 Annual meeting, July 28-31, Long Beach, CA with number 19771.

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    Date of creation: 2002
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    Handle: RePEc:ags:aaea02:19771

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    Related research

    Keywords: Agribusiness; Research and Development/Tech Change/Emerging Technologies;

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    1. Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
    2. Aoki, Reiko, 1991. "R&D Competition for Product Innovation: An Endless Race," American Economic Review, American Economic Association, vol. 81(2), pages 252-56, May.
    3. Fudenberg, Drew & Gilbert, Richard & Stiglitz, Joseph & Tirole, Jean, 1983. "Preemption, leapfrogging and competition in patent races," European Economic Review, Elsevier, vol. 22(1), pages 3-31, June.
    4. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    5. Segerstrom, Paul S & Anant, T C A & Dinopoulos, Elias, 1990. "A Schumpeterian Model of the Product Life Cycle," American Economic Review, American Economic Association, vol. 80(5), pages 1077-91, December.
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