The Gains From Cooperative R&D With A Concave Technology And Spillovers
We reassess the respective gains from R&D cooperation and competition in a Cournot duopoly where firms adopt a concave cost-reducing R&D technology. Cooperation, in the form of either a cartel or a joint venture, is always profitable for firms and, contrary to the previous literature on the same topic, (i) no corner solutions emerge and (ii) R&D cooperation is socially superior to independent ventures for any spillover level, provided the cost of R&D financing is sufficiently high.
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Volume (Year): 11 (2009)
Issue (Month): 01 ()
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References listed on IDEAS
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