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R&D Cooperation With Unit‐Elastic Demand

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  • Georg Götz
  • Anna Hammerschmidt

Abstract

The present paper shows that R&D cooperation leads to the monopoly outcome in terms of price and quantity if demand is unit‐elastic. If the demand function exhibits an upper bound for the willingness to pay, R&D cooperation is inferior to a scenario in which firms cooperate both in their R&D and their output decision.

Suggested Citation

  • Georg Götz & Anna Hammerschmidt, 2009. "R&D Cooperation With Unit‐Elastic Demand," Bulletin of Economic Research, Wiley Blackwell, vol. 61(2), pages 179-188, April.
    • Handle: RePEc:bla:buecrs:v:61:y:2009:i:2:p:179-188
    DOI: 10.1111/j.1467-8586.2008.00292.x
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    References listed on IDEAS

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