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Noncooperative R&D and Optimal R&D Cartels

Author

Listed:
  • Rabah Amir

    (University of Southern Denmark, Odense)

  • Igor Evstigneev

    (Russian Academy of Sciences, Moscow)

  • John Wooders

    (University of Arizona)

Abstract

This paper deals with a general version of a two-stage model of R&D and product market competition. We provide a thorough generalization of previous results on the comparative performance of noncooperative and cooperative R&D, dispensing in particular with ex-post symmetry and linear demand assumptions. We also characterize the structure of optimal R&D cartels where firms competing in a product market jointly decide R&D expenditure, as well as internal spillover, levels. We establish the firms would essentially always prefer extremal spillovers. Within the context of a standard specification, we provide conditions for the optimality of minimal spillover.

Suggested Citation

  • Rabah Amir & Igor Evstigneev & John Wooders, 2000. "Noncooperative R&D and Optimal R&D Cartels," CIE Discussion Papers 2000-09, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  • Handle: RePEc:kud:kuieci:2000-09
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    Cited by:

    1. Temimi, Akram & Dakhlia, Sami & Menezes, Flavio Marques, 2001. "Duplication of R&D and industry concentration," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 437, FGV/EPGE - Escola Brasileira de Economia e Finan├žas, Getulio Vargas Foundation (Brazil).

    More about this item

    Keywords

    oligopolistic R&D; Spillovers; research joint ventures; R&D cartel;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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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