Régime de Tarification de l'Input dans un modèle avec Innovation de Produit en Amont et en Aval
[Input Pricing in a Model with Upstream and Downstream Product Innovation]
AbstractIn this paper, we analyze the incentives for improving-quality R&D in a two-tier marketstructure where the quality of a differentiated good depends on the specific R&D of a downstream oligopoly and the R&D of an upstream monopoly. We show that input pricing is determining for the incentives for innovation in upstream and downstream industry. Fixed price agreements promote innovation in downstream and upstream industry by eliminating the opportunistic behaviour of the input supplier and are welfare enhancing. Theses agreements are all the more effective as the weight of the quality of the input in the consumer’s perception of the total quality of the final good is significant and as the goods are strongly differentiated.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8237.
Date of creation: 11 Apr 2008
Date of revision:
Product Innovation; Vertical Market - Technological Spillovers - Input pricing;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-21 (All new papers)
- NEP-COM-2008-04-21 (Industrial Competition)
- NEP-INO-2008-04-21 (Innovation)
- NEP-IPR-2008-04-21 (Intellectual Property Rights)
- NEP-MIC-2008-04-21 (Microeconomics)
- NEP-MKT-2008-04-21 (Marketing)
- NEP-TID-2008-04-21 (Technology & Industrial Dynamics)
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- Banerjee, Samiran & Lin, Ping, 2001. "Vertical research joint ventures," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 285-302, January.
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