This paper considers competition between R&D cartels, whereby prospectiveCournot competitors coordinate their R&D decisions in order to maximize jointprofit. It studies how R&Dactivity, aggregate profit, consumer surplus, and social welfarevary as the number of competing cartels varies. It also compares equilibrium withsecond bestR&D, and discusses the policy implications of the results. The results showthat the effects of R&D cartel competition depend on the welfare criterion adoptedand on whether there are cooperative synergies or not.
|Number of pages||28|
|Journal||JOURNAL OF ECONOMICS|
|Publication status||Published - 2014|
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Economics and Econometrics