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Research Joint Ventures and the Cost Paradox

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  • Kline, J.J.

Abstract

We consider the impact of the cost paradox on the likelihood of cooperative firms to use a cost reducing Research Joint Venture (RJV) to increase research levels when spillovers are large.

Suggested Citation

  • Kline, J.J., 1998. "Research Joint Ventures and the Cost Paradox," Papers 356, Australian National University - Department of Economics.
    • Handle: RePEc:fth:aunaec:356
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    References listed on IDEAS

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    1. William Novshek, 1985. "On the Existence of Cournot Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 85-98.
    2. Szidarovszky, F & Yakowitz, S, 1977. "A New Proof of the Existence and Uniqueness of the Cournot Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(3), pages 787-789, October.
    3. Suzumura, Kotaro, 1992. "Cooperative and Noncooperative R&D in an Oligopoly with Spillovers," American Economic Review, American Economic Association, vol. 82(5), pages 1307-1320, December.
    4. Richard R. Nelson, 1957. "Increased Rents from Increased Costs: A Paradox of Value Theory," Journal of Political Economy, University of Chicago Press, vol. 65, pages 387-387.
    5. Seade, Jesus, 1980. "The stability of cournot revisited," Journal of Economic Theory, Elsevier, vol. 23(1), pages 15-27, August.
    6. Suzumura, Kotaro, 1993. "Cooperative and Non-Cooperative R&D in an Oligopoly with Spillovers : Strategic Substitutes versus Strategic Complements," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 34(1), pages 1-11, June.
    7. Fuess, Scott Jr. & Loewenstein, Mark A., 1991. "On strategic cost increases in a duopoly," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 389-395, September.
    8. Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February.
    9. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
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    Citations

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    Cited by:

    1. Ruslan Lukach & Joseph Plasmans & Peter M. Kort, 2005. "Innovation Strategies in a Competitive Dynamic Setting," CESifo Working Paper Series 1395, CESifo.
    2. Pei‐Cheng Liao, 2008. "Downstream R&D Rivalry With Spillovers And Discriminatory Input Pricing," Australian Economic Papers, Wiley Blackwell, vol. 47(4), pages 376-388, December.
    3. René Belderbos & Martin Carree & Boris Lokshin, 2006. "Complementarity in R&D Cooperation Strategies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(4), pages 401-426, June.
    4. Georg Götz & Anna Hammerschmidt, 2009. "R&D Cooperation With Unit‐Elastic Demand," Bulletin of Economic Research, Wiley Blackwell, vol. 61(2), pages 179-188, April.
    5. 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).
    6. Kaiser, Ulrich, 2002. "An empirical test of models explaining research expenditures and research cooperation: evidence for the German service sector," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 747-774, June.

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    More about this item

    Keywords

    COSTS ; RESEARCH AND DEVELOPMENT ; INNOVATIONS ; OLIGOPOLIES;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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