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Noncooperative R&D and Optimal R&D Cartels

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Author Info

  • Rabah Amir

    (University of Southern Denmark, Odense)

  • Igor Evstigneev

    (Russian Academy of Sciences, Moscow)

  • John Wooders

    (University of Arizona)

Abstract

This paper deals with a general version of a two-stage model of R&D and product market competition. We provide a thorough generalization of previous results on the comparative performance of noncooperative and cooperative R&D, dispensing in particular with ex-post symmetry and linear demand assumptions. We also characterize the structure of optimal R&D cartels where firms competing in a product market jointly decide R&D expenditure, as well as internal spillover, levels. We establish the firms would essentially always prefer extremal spillovers. Within the context of a standard specification, we provide conditions for the optimality of minimal spillover.

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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 2000-09.

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Length: 33 pages
Date of creation: Dec 2000
Date of revision:
Handle: RePEc:kud:kuieci:2000-09

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Related research

Keywords: oligopolistic R&D; Spillovers; research joint ventures; R&D cartel;

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Cited by:
  1. SUETENS, Sigrid, 2004. "Literature review: R&D cooperation in oligopoly with spillovers: An experimental economics approach," Working Papers 2004024, University of Antwerp, Faculty of Applied Economics.
  2. Temimi, Akram & Dakhlia, Sami & Menezes, Flavio Marques, 2001. "Duplication of R D and Industry Concentration," Economics Working Papers (Ensaios Economicos da EPGE) 437, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).

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