Symmetric Research Joint Ventures - Cooperative Substitutes and Complements
AbstractWe introduce the concept of cooperative substitutes and complements, and use it to throw light on the conditions for a research joint venture to choose equal levels of R&D by all member firms. We show that the second-order conditions for a symmetric optimum take a particularly simple form, ruling out both excessive cooperative substitutability and excessive cooperative complementarity, and nesting conditions already derived in the literature. Finally we explore the implications of our results for the comparison between research joint ventures and a non-cooperative equilibrium.
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Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 200417.
Length: 27 pages
Date of creation: 24 May 2004
Date of revision:
Bertrand and Cournot competition; cooperative substitutes and complements; R&D; research joint ventures; strategic trade and industrial policy;
Other versions of this item:
- Leahy, Dermot & Neary, J. Peter, 2005. "Symmetric research joint ventures: Cooperative substitutes and complements," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 381-397, June.
- Leahy, Dermot & Neary, J Peter, 2004. "Symmetrical Research Joint Ventures: Cooperative Substitutes and Complements," CEPR Discussion Papers 4497, C.E.P.R. Discussion Papers.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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