Artikel

Product competition and R&D investment under spillovers within full or partial collusion games

The paper investigates firms' behavior and outcomes (levels of cost-reducing R&D, output, profit and welfare in equilibrium) in a differentiated duopoly with process innovation. One of the important features in this paper is that spillovers operate in the R&D stage and are tied to the degree of product substitutability as well as the extent of technological proximity/alienation of the research paths leading to cost reduction. Using this feature, the paper tries to explore and compare four separate organization setups (Full Competition, Semi-collusion in Production, Semi-collusion in R&D and Full Collusion). It is found that under technological proximity, competitions at the upstream stage depress R&D investment, and firms colluding in R&D regardless of their production strategy always yield more profit and generate higher social welfare than firms colluding in output; under technological alienation, R&D cooperation may reduce firms' interest to invest in R&D, and it is possible that firms in the Full Collusion regime produce most and generate the highest level of social welfare.

Sprache
Englisch

Erschienen in
Journal: Latin American Economic Review ; ISSN: 2196-436X ; Volume: 24 ; Year: 2015 ; Issue: 1 ; Pages: 1-27 ; Heidelberg: Springer

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Innovation and Invention: Processes and Incentives
Thema
R&D
Spillover
Semi-collusion
Product differentiation
Horizontal merger

Ereignis
Geistige Schöpfung
(wer)
Zhao, Kai
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2015

DOI
doi:10.1007/s40503-015-0018-6
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Zhao, Kai
  • Springer

Entstanden

  • 2015

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