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.

LAMBERTINI L., ROSSINI G. (2006). Investment in Transport and Communication Technology in a Cournot Duopoly with Trade. JAPAN AND THE WORLD ECONOMY, 18(12), 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.
2006
LAMBERTINI L., ROSSINI G. (2006). Investment in Transport and Communication Technology in a Cournot Duopoly with Trade. JAPAN AND THE WORLD ECONOMY, 18(12), 221-229 [10.1016/j.japwor.2004.08.003].
LAMBERTINI L.; ROSSINI G.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/1711
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