Quality–Price Competition and Product R&D Investment Policies in Developing and Developed Countries
type="main" xml:id="ecor12076-abs-0001"> <p>This study establishes a third-country trade model where firms from developing and developed countries invest into product R&D under their governments' subsidisation policies to analyse firms' quality–price choices and governments' optimal product R&D investment policies. We show that a rise in the developing (developed) country's product R&D subsidy makes firms' quality–price competition more (less) intense and that the governments' optimal product R&D policies, depending on the features of their quality and demand functions, can both be subsidies even under Bertrand price competition, contrary to the findings of previous studies.
Year of publication: |
2014
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Authors: | Ishii, Yasunori |
Published in: |
The Economic Record. - Economic Society of Australia - ESA, ISSN 1475-4932. - Vol. 90.2014, 289, p. 197-206
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Publisher: |
Economic Society of Australia - ESA |
Saved in:
Online Resource
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