Journal article
Effects of One-Way Spillovers on Market Shares, Industry Price, Welfare, and R & D Cooperation
Journal of economics & management strategy, Vol.8(2), pp.223-249
06/01/1999
DOI: 10.1111/j.1430-9134.1999.00223.x
Abstract
With one-way spillovers, the standard symmetric two-period R & D model leads to an asymmetric equilibrium only, with endogeneous innovator and imitator roles. We show how R & D decisions and measures affirm heterogeneity - market shares, R & D shares, and profits - depend on spillovers and on R & D costs. While a joint lab always improves on consumer welfare, it yields higher profits, cost reductions, and social welfare only under extra assumptions, beyond those required with multidirectional spillovers. Finally, the novel issue of optimal R & D cartels is addressed. We show an optimal R & D cartel may seek to minimize R & D spillovers between its members.
Details
- Title: Subtitle
- Effects of One-Way Spillovers on Market Shares, Industry Price, Welfare, and R & D Cooperation
- Creators
- Rabah Amir - University of Southern DenmarkJohn Wooders - University of Arizona
- Resource Type
- Journal article
- Publication Details
- Journal of economics & management strategy, Vol.8(2), pp.223-249
- Publisher
- Blackwell Publishing Ltd
- DOI
- 10.1111/j.1430-9134.1999.00223.x
- ISSN
- 1058-6407
- eISSN
- 1530-9134
- Number of pages
- 27
- Language
- English
- Date published
- 06/01/1999
- Academic Unit
- Economics
- Record Identifier
- 9984380459202771
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