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Research joint ventures and the cost paradox

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  • Kline, J. Jude

Abstract

We consider the impact of the cost paradox on the likelihood of cooperative firms to use a cost reducing Research Joint Venture (RJV) to increase research levels when spillovers are large.
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Suggested Citation

  • Kline, J. Jude, 2000. "Research joint ventures and the cost paradox," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1049-1065, October.
  • Handle: RePEc:eee:indorg:v:18:y:2000:i:7:p:1049-1065
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    References listed on IDEAS

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    1. Suzumura, Kotaro, 1993. "Cooperative and Non-Cooperative R&D in an Oligopoly with Spillovers : Strategic Substitutes versus Strategic Complements," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 34(1), pages 1-11, June.
    2. William Novshek, 1985. "On the Existence of Cournot Equilibrium," Review of Economic Studies, Oxford University Press, vol. 52(1), pages 85-98.
    3. Szidarovszky, F & Yakowitz, S, 1977. "A New Proof of the Existence and Uniqueness of the Cournot Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(3), pages 787-789, October.
    4. Fuess, Scott Jr. & Loewenstein, Mark A., 1991. "On strategic cost increases in a duopoly," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 389-395, September.
    5. Richard R. Nelson, 1957. "Increased Rents from Increased Costs: A Paradox of Value Theory," Journal of Political Economy, University of Chicago Press, vol. 65, pages 387-387.
    6. Seade, Jesus, 1980. "The stability of cournot revisited," Journal of Economic Theory, Elsevier, vol. 23(1), pages 15-27, August.
    7. Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February.
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    Citations

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    Cited by:

    1. Ruslan Lukach & Joseph Plasmans & Peter M. Kort, 2005. "Innovation Strategies in a Competitive Dynamic Setting," CESifo Working Paper Series 1395, CESifo Group Munich.
    2. Pei-Cheng Liao, 2008. "Downstream R&D Rivalry With Spillovers And Discriminatory Input Pricing," Australian Economic Papers, Wiley Blackwell, vol. 47(4), pages 376-388, December.
    3. René Belderbos & Martin Carree & Boris Lokshin, 2006. "Complementarity in R&D Cooperation Strategies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(4), pages 401-426, June.
    4. Yasunori Ouchida & Daisaku Goto, 2014. "Environmental Research Joint Ventures and Time-Consistent Emission Tax," Working Papers 2014.35, Fondazione Eni Enrico Mattei.
    5. Kaiser, Ulrich, 2002. "An empirical test of models explaining research expenditures and research cooperation: evidence for the German service sector," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 747-774, June.

    More about this item

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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