Arbeitspapier
Technology spillovers and outside options in a bilateral duopoly
This paper examines the role of outside options in a downstream duopoly with exclusive vertical relations as in the Japanese automobile industry. In our setup, the downstream firms have outside options, and two upstream firms with exclusive relations can engage in cost reducing investments. More interestingly, each upstream firm can choose whether to voluntarily generate technology spillovers to its rival. We show that better outside options of the downstream firms can induce voluntary technology spillovers in the upstream level, increasing the profits of all firms on the vertical chain.
- Language
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Englisch
- Bibliographic citation
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Series: ISER Discussion Paper ; No. 1039
- Classification
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Wirtschaft
Oligopoly and Other Imperfect Markets
Management of Technological Innovation and R&D
Production Management
Noncooperative Games
- Subject
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Strategic sourcing
Outside option
Spillovers
Vertical relations
- Event
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Geistige Schöpfung
- (who)
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Matsushima, Noriaki
Zhao, Laixun
- Event
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Veröffentlichung
- (who)
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Osaka University, Institute of Social and Economic Research (ISER)
- (where)
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Osaka
- (when)
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2018
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Matsushima, Noriaki
- Zhao, Laixun
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2018