Bönte, Werner; Wiethaus, Lars - Universitätsbibliothek Wuppertal, University Library - 2008
It is a common concern that pricing pressure by powerful buyers discourages suppliers' R&D investments. Employing a simple monopsonist - competitive upstream industry - framework, this paper qualifies this view in two respects. First, the monopsonist has an incentive to subsidize upstream R&D...