Nguyen, Xuan; Sgro, Pasquale; Nabin, Munirul - In: Economic Modelling 36 (2014) C, pp. 600-606
This paper develops a duopoly model of vertical product differentiation where two domestic firms incur variable costs of quality development. These domestic firms can purchase a superior foreign technology through licensing. Outcomes between Bertrand and Cournot competition are compared. We find...