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One-Way Spillovers, Endogenous Innovator/Imitator Roles, and Research Joint Ventures

  • Amir, Rabah
  • Wooders, John

We consider a two-period duopoly characterized by a one-way spillover structure in process R&D and a very broad specification of product market competition. We show that a priori identical firms always engage in different levels of R&D, at equilibrium, thus giving rise to an innovator/imitator configuration and ending up with different sizes. We also provide a general analysis of the social benefits of, and firms’ incentive for, forming research joint ventures. The key properties of the game are submodularity (R&D decisions are strategic substitutes) and lack of global concavity.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 31 (2000)
Issue (Month): 1 (April)
Pages: 1-25

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Handle: RePEc:eee:gamebe:v:31:y:2000:i:1:p:1-25
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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