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Incomplete information and R&D organization

Author

Listed:
  • Chattopadhyay, Srobonti
  • Kabiraj, Tarun

Abstract

The paper studies incentives for cooperative research vis-à-vis non-cooperative research under incomplete information when the R&D outcome is stochastic and continuously distributed with a given mean and a constant variance. We show that the non-cooperative R&D incentive increases with the variance of the R&D outcome. And this result does not depend on the nature of the product market competition.

Suggested Citation

  • Chattopadhyay, Srobonti & Kabiraj, Tarun, 2014. "Incomplete information and R&D organization," MPRA Paper 59205, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59205
    as

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    References listed on IDEAS

    as
    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 1133-1137, December.
    2. 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.
    3. Marjit, Sugata, 1991. "Incentives for cooperative and non-cooperative R and D in duopoly," Economics Letters, Elsevier, vol. 37(2), pages 187-191, October.
    4. Motta, Massimo, 1992. "Cooperative R&D and vertical product differentiation," International Journal of Industrial Organization, Elsevier, vol. 10(4), pages 643-661, December.
    5. Arijit Mukherjee & Achintya Ray, 2009. "Unsuccessful patent application and cooperative R&D," Journal of Economics, Springer, vol. 97(3), pages 251-263, July.
    6. Combs, K. L., 1992. "Cost sharing vs. multiple research projects in cooperative R&D," Economics Letters, Elsevier, vol. 39(3), pages 353-357, July.
    7. Silipo, Damiano Bruno & Weiss, Avi, 2005. "Cooperation and competition in an R&D market with spillovers," Research in Economics, Elsevier, vol. 59(1), pages 41-57, March.
    8. Choi, Jay Pil, 1992. "Cooperative R&D with moral hazard," Economics Letters, Elsevier, vol. 39(4), pages 485-491, August.
    9. Kabiraj, Tarun & Chattopadhyay, Srobonti, 2014. "Cooperative vs. non-cooperative R&D incentives under incomplete information," MPRA Paper 59259, University Library of Munich, Germany.
    10. Choi, Jay Pil, 1993. "Cooperative R&D with product market competition," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 553-571.
    11. Tarun Kabiraj & Arijit Mukherjee, 2000. "Cooperation in R&D and production: a three-firm analysis," Journal of Economics, Springer, vol. 71(3), pages 281-304, October.
    12. Kabiraj, Tarun, 2007. "On the incentives for cooperative research," Research in Economics, Elsevier, vol. 61(1), pages 17-23, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cooperative R&D; non-cooperative R&D; incomplete information; variance of the research outcome;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • 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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