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Monopoly versus R&D-integrated Duopoly
Journal article   Open access   Peer reviewed

Monopoly versus R&D-integrated Duopoly

Rabah Amir, Niels Nannerup, Anna Stepanova and Eline Eguiazarova
The Manchester school, Vol.70(1), pp.88-100
01/2002
DOI: 10.1111/1467-9957.00285
url
https://doi.org/10.1111/1467-9957.00285View
Published (Version of record) Open Access

Abstract

In the standard two-stage framework of R&D/product market competition, this paper provides a performance comparison between monopoly and the cartelized research joint venture, using two well-known models based on different versions of the R&D spillover process. According to the model with a wider scope of application, monopoly always leads to a higher propensity for R&D and, when R&D costs are low, to the best overall market performance. The results also allow for a comparison between the two underlying models of strategic R&D.

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