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Cooperation in the Classroom: Experimenting with Research Joint Ventures

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Author Info

  • Michelle Sovinsky Goeree

    (Claremont McKenna College)

  • Jeroen Hinloopen

    (University of Amsterdam)

Abstract

This paper describes a classroom exercise that illustrates the investment incentives facing firms when technological spillovers are present. The game involves two stages in which student “sellers” first make investment decisions then production decisions. The classroom game can be used to motivate discussions of research joint ventures, the free-rider problem, collusion, and antitrust policy regarding research and development.

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File URL: http://128.118.178.162/eps/get/papers/0503/0503005.pdf
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Bibliographic Info

Paper provided by EconWPA in its series General Economics and Teaching with number 0503005.

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Length: 17 pages
Date of creation: 10 Mar 2005
Date of revision:
Handle: RePEc:wpa:wuwpgt:0503005

Note: Type of Document - pdf; pages: 17
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Web page: http://128.118.178.162

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  1. Charles A. Holt & Roger Sherman, 1999. "Classroom Games: A Market for Lemons," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 205-214, Winter.
  2. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-21, January.
  3. Jeroen Hinloopen, 1997. "Subsidizing cooperative and noncooperative R&D in duopoly with spillovers," Journal of Economics, Springer, vol. 66(2), pages 151-175, June.
  4. d'ASPREMONT, Claude & JACQUEMIN, Alexis, . "Cooperative and noncooperative R&D in duopoly with spillovers," CORE Discussion Papers RP -823, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-306, December.
  6. Jorde, Thomas M & Teece, David J, 1990. "Innovation and Cooperation: Implications for Competition and Antitrust," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 75-96, Summer.
  7. Capra, C. Monica & Goeree, Jacob K. & Gomez, Rosario & Holt, Charles A., 2000. "Predation, asymmetric information and strategic behavior in the classroom: an experimental approach to the teaching of industrial organization," International Journal of Industrial Organization, Elsevier, vol. 18(1), pages 205-225, January.
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