Falvey, Rod; Poyago-Theotoky, Joanna; Teerasuwannajak, … - In: Economic Modelling 33 (2013) C, pp. 965-976
We consider a simple oligopoly model where firms engage in cost-reducing R&D and compare two R&D regimes: R&D competition and R&D cooperation in the form of a research joint venture (RJV). We introduce coordination costs for the RJV and examine how these affect the equilibrium outcomes.