Search results for " endogenous asymmetry"

showing 2 items of 2 documents

Competing R&D Joint Ventures in Cournot oligopoly with spillovers

2014

This paper considers competition between R&D cartels, whereby prospective Cournot competitors coordinate their R&D decisions in order to maximize joint profit. It studies how R&D activity, aggregate profit, consumer surplus, and social welfare vary as the number of competing cartels varies. It also compares equilibrium with second best R&D, and discusses the policy implications of the results. The results show that the effects of R&D cartel competition depend on the welfare criterion adopted and on whether there are cooperative synergies or not.

Economics and Econometricsmedia_common.quotation_subjectCartelSocial WelfareCompetitor analysisEconomic surplusCournot competitionSettore SECS-P/06 - Economia ApplicataGeneral Business Management and AccountingProfit (economics)MicroeconomicsR&D cartel competition R&D spillovers R&D policy endogenous asymmetryEconomicsWelfaremedia_commonPublic finance
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Endogenous asymmetry and cooperative R&D in linear duopoly with spillovers

2009

In a standard model of R&D followed by linear Cournot competition, firm asymmetry is sustainable as equilibrium with non cooperative R&D if and only if the productivity of research is sufficiently large relative to the benefits of imitation. Increasing spillovers distribute R&D results among asymmetric competitors, causing price, firm asymmetry, and joint profit to reduce. With zero spillovers, a symmetric joint lab dominates asymmetric R&D competition in terms of social welfare and consumer surplus, but is sometimes dominated in terms of joint profit. Raising spillovers encourage symmetric collusion but makes the latter potentially harmful to consumers. (JEL : C72; L13; O32).

Settore SECS-P/06 - Economia ApplicataCollusive R&D with spillovers Endogenous Asymmetry
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