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Long-term research and development incentives in a dynamic Cournot duopoly

Author

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  • Yap, Yee Jiun
  • Luckraz, Shravan
  • Tey, Siew Kian

Abstract

This paper constructs an ex-ante asymmetric R&D Cournot differential game with knowledge spillovers. It shows that in the long-run equilibrium firms have incentives to innovate as long as the knowledge externalities are bidirectional. We also carry out a series of numerical simulations of the differential game to illustrate our results.

Suggested Citation

  • Yap, Yee Jiun & Luckraz, Shravan & Tey, Siew Kian, 2014. "Long-term research and development incentives in a dynamic Cournot duopoly," Economic Modelling, Elsevier, vol. 39(C), pages 8-18.
    • Handle: RePEc:eee:ecmode:v:39:y:2014:i:c:p:8-18
    DOI: 10.1016/j.econmod.2014.02.020
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    References listed on IDEAS

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    Cited by:

    1. Goel, Rajeev K. & Saunoris, James W., 2016. "Institutional path dependence and international research intensity," Economic Modelling, Elsevier, vol. 52(PB), pages 851-858.
    2. Haruna Shoji & Goel Rajeev K., 2016. "International Tariffs in a Mixed Oligopoly with Research Spillovers," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(3), pages 277-293, August.

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