English, Article, Journal or magazine article edition: The Sensitivity of Strategic and Corrective R&D Policy in Oligopolistic Industries Kyle Bagwell; Robert W. Staiger

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/140983
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Sensitivity of Strategic and Corrective R&​D Policy in Oligopolistic Industries
Author
  • Kyle Bagwell
  • Robert W. Staiger
Physical Description
  • preprint
Notes
  • We evaluate the sensitivity of the case for an R&​D subsidy in an export sector when the outcome of R&​D is uncertain and when the resulting product market is oligopolistic. Investments in R&​D are assumed to induce either first order or mean-preserving second order shifts in the distribution of a firm's costs, with firms then competing in either prices or quantities in the product market. When R&​D reduces the mean of a firm's cost distribution in the particular sense of first order stochastic dominance, we find using standard models of product market competition that a national strategic basis for R&​D subsidies exists, whether firms choose prices or quantities. This national strategic incentive to subsidize R&​D must be balanced against the national corrective incentive to tax R&​D that arises whenever the number of domestic firms exceeds one. However, when R &​ D preserves the mean but alters the riskiness of a firm's cost distribution in the sense of second order stochastic dominance, we find that the national strategic basis for R&​D intervention completely disappears, while the national corrective incentive is now to subsidize R&​D whenever the number of domestic firms exceeds one. We conclude that the crucial determinant of appropriate R&​D policy is the nature of the R&​D process itself.
  • RePEc:nbr:nberwo:3236
  • RePEc:nwu:cmsems:869
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment