English, Article, Journal or magazine article edition: Endogenous R&D symmetry in linear duopoly with one-way spillovers A, TESORIERE

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  • preprint
Language
  • English

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Title
  • Endogenous R&​D symmetry in linear duopoly with one-way spillovers
Author
  • A, TESORIERE
Physical Description
  • preprint
Notes
  • In a linear model of cost reducing R&​D/​Cournot competition, firm assymetry is shown to be sustainable as subgame perfect Nash equilibrium with R&​D competition only if the productivity of research is sufficiently large realtive to the benefits from imitation. In such a case, industry-wide cost reduction and firms assymetry are increasing and decreasing functions of the spillover rate, respectively. In the absence of spillovers, a symmetric joint lab generates higher consumer surplus and social welfare than a pari of assymmetric competitors. If spillovers are not too small, asymmetric R&​D competition is advantageous to consumers, but not to firms
  • Endogenous asymmetry, Cournot instability, R&​D cooperation
  • RePEc:ctl:louvec:2005037
Language
  • English
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