We reassess the respective gains from R&D cooperation and competition in a Cournot duopoly where firms adopt a concave cost-reducing R&D technology. Cooperation, in the form of either a cartel or a joint venture, is always profitable for firms and, contrary to the previous literature on the same topic, (i) no corner solutions emerge and (ii) R&D cooperation is socially superior to independent ventures for any spillover level, provided the cost of R&D financing is sufficiently high.
The gains from cooperative R&D with a concave technology and spillovers / L. Lambertini; G. Rossini. - In: INTERNATIONAL GAME THEORY REVIEW. - ISSN 0219-1989. - STAMPA. - 11:(2009), pp. 1-9. [10.1142/S0219198909002157]
The gains from cooperative R&D with a concave technology and spillovers
LAMBERTINI, LUCA;ROSSINI, GIANPAOLO
2009
Abstract
We reassess the respective gains from R&D cooperation and competition in a Cournot duopoly where firms adopt a concave cost-reducing R&D technology. Cooperation, in the form of either a cartel or a joint venture, is always profitable for firms and, contrary to the previous literature on the same topic, (i) no corner solutions emerge and (ii) R&D cooperation is socially superior to independent ventures for any spillover level, provided the cost of R&D financing is sufficiently high.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.