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Modelling Imperfectly Appropriable R&D via Spillovers

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Author Info

  • Rabah Amir

    (Institute of Economics, University of Copenhagen)

Abstract

We provide an extensive comparison of the R&D models of d'Aspremont-Jacquemin (1988) and Kamien-Muller-Zang (1992), exposing full or partial conflict in key conclusions and policy prescriptions. Using three separate formal and/or intuitive criteria, we argue that the first model is invalid for large spillover values. This conclusion is corroborated by an additional argument leading to equivalence between the two R&D processes, but not to agreement on some key conclusions. Hence, the models emerge as fundamentally different, although a unilateral shift in the cost function of the first leads to agreement in all equilibrium outcomes.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 1998-07.

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Length: 14 pages
Date of creation: Jul 1998
Date of revision:
Publication status: Published in: International Journal of Industrial Organization. October 2000; 18(7): 1013-32
Handle: RePEc:kud:kuieci:1998-07

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Related research

Keywords: oligopolistic R&D; spillovers; R&D cooperation; model validity;

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