We investigate the role of R&D investment in transport and communication (TCRD) in a Cournot duopoly with trade. We consider countries of different size and show that the firm located in the smaller country has a higher incentive to invest than the rival in the larger country. We also prove that social incentives are aligned with private ones. As for the terms of trade, any improvement of TC technology favours the smaller country, all else equal.
Investment in Transport and Communication Technology in a Cournot Duopoly with Trade / LAMBERTINI L.; ROSSINI G.. - In: JAPAN AND THE WORLD ECONOMY. - ISSN 0922-1425. - STAMPA. - 18:12(2006), pp. 221-229. [10.1016/j.japwor.2004.08.003]
Investment in Transport and Communication Technology in a Cournot Duopoly with Trade
LAMBERTINI, LUCA;ROSSINI, GIANPAOLO
2006
Abstract
We investigate the role of R&D investment in transport and communication (TCRD) in a Cournot duopoly with trade. We consider countries of different size and show that the firm located in the smaller country has a higher incentive to invest than the rival in the larger country. We also prove that social incentives are aligned with private ones. As for the terms of trade, any improvement of TC technology favours the smaller country, all else equal.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
