IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

International R&D Rivalry with a Shipping Firm

  • Takauchi, Kazuhiro

To examine the role of shipping firms in the international research and development (R&D) rivalry, we build a two-country (exporting and importing), two-firm (exporting and local) duopoly model with a shipping firm. The exporting firm competes with the local firm in the duopoly market of the local country but must pay a shipping fee to the shipping firm in order to sell its product in the local market. Similar to market competition, exporting and local firms engage in R&D competition. We compare two timing structures of the game: in one, the R&D stage is first, and in the other, the shipping firm is the leader. We show that when the R&D stage is first, there are ranges of parameter values such that the investment level of the exporting firm decreases as R&D becomes more efficient. When the shipping firm is the leader, we show that there are ranges of parameter values such that the profit of the local firm decreases as R&D becomes more efficient. Further, it is shown that consumers in the local country prefer the regime in which the shipping firm is the leader, whereas the government of the local country prefers the other regime.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://mpra.ub.uni-muenchen.de/36843/1/MPRA_paper_36843.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36843.

as
in new window

Length:
Date of creation: 20 Feb 2012
Date of revision:
Handle: RePEc:pra:mprapa:36843
Contact details of provider: Postal:
Ludwigstraße 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page: https://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Barbara J. Spencer & James A. Brander, 1983. "International R&D Rivalry and Industrial Strategy," NBER Working Papers 1192, National Bureau of Economic Research, Inc.
  2. Praveen Kujal & Juan Ruiz, 2009. "International Trade Policy towards Monopoly and Oligopoly," Working Papers 0901, Banco de España;Working Papers Homepage.
  3. Long, Ngo Van & Raff, Horst & Stähler, Frank, 2008. "Innovation and Trade with Heterogeneous Firms," Kiel Working Papers 1430, Kiel Institute for the World Economy (IfW).
  4. Francois, Joseph F & Wooton, Ian, 2001. "Trade in International Transport Services: The Role of Competition," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 249-61, May.
  5. Dewit, Gerda & Leahy, Dermot, 2001. "Rivalry in Uncertain Export Markets: Commitment versus Flexibility," CEPR Discussion Papers 2771, C.E.P.R. Discussion Papers.
  6. Leahy, Dermot & Neary, J Peter, 1996. "International R&D Rivalry and Industrial Strategy without Government Commitment," Review of International Economics, Wiley Blackwell, vol. 4(3), pages 322-38, October.
  7. Kujal Praveen & Ruiz Juan M., 2007. "Cost Effectiveness of R&D and Strategic Trade Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-35, April.
  8. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521816632, June.
  9. Justus Haucap & Christian Wey, 2004. "Unionisation Structures and Innovation Incentives," Discussion Papers of DIW Berlin 398, DIW Berlin, German Institute for Economic Research.
  10. Kjell Erik Lommerud & Frode Meland & Lars S¯rgard, 2003. "Unionised Oligopoly, Trade Liberalisation and Location Choice," Economic Journal, Royal Economic Society, vol. 113(490), pages 782-800, October.
  11. Soamiely Andriamananjara, 2002. "Trade and International Transport Services: An Analytical Framework," International Trade 0211003, EconWPA.
  12. Junichiro Ishida & Toshihiro Matsumura & Noriaki Matsushima, 2011. "Market Competition, R&D And Firm Profits In Asymmetric Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 59(3), pages 484-505, 09.
  13. Lahiri, S. & Ono, Y., 1995. "Optimal Tariffs in the Presence of Middlemen," ISER Discussion Paper 0389, Institute of Social and Economic Research, Osaka University.
  14. Calabuig, Vicente & Gonzalez-Maestre, Miguel, 2002. "Union structure and incentives for innovation," European Journal of Political Economy, Elsevier, vol. 18(1), pages 177-192, March.
  15. Gerda Dewit & Dermot Leahy, 2011. "Strategic Investment and the Gains from Trade," Economics, Finance and Accounting Department Working Paper Series n216-11.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  16. Haaland, Jan I. & Kind, Hans Jarle, 2004. "R&D Policies, Trade and Process Innovation," CEPR Discussion Papers 4784, C.E.P.R. Discussion Papers.
  17. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:36843. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.