Game theory is used to examine the incentives for private firms to fund applied research to improve differentiated crop varieties sold to compete with a public generic variety. We distinguish between applied research, modeled as a stochastic search process, and basic research, which improves...

An incumbent export subsidy will affect the size and distribution of gains from bilateral trade liberalization but, in theory, may still permit increased trade volume and mutual benefits from freer trade. These points are illustrated using the case of Canada-U.S. durum wheat trade, which grew...