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We examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. For that we utilize a dynamic model of R&D whereby we consider all possible initial marginal cost levels (technologies), including those...
Persistent link: https://www.econbiz.de/10010326462
production at different times. We discern the impact of knowledge spillovers on the investments in existing markets, as well as … between spillovers, R&D efforts, and surpluses is non-monotonic and dependent on both the relative and absolute efficiency of … firms. Larger spillovers increase the likelihood that a new technology is brought to production, but they do not necessarily …
Persistent link: https://www.econbiz.de/10010491339
We present a continuous-time generalization of the seminal R&D model of d'Aspremont and Jacquemin (The American Economic Review 78(5): 1133–1137, 1988) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product...
Persistent link: https://www.econbiz.de/10011662518
We present a continuous-time generalization of the seminal R&D model of d’Aspremont and Jacquemin (American Economic Review, 1988) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. We...
Persistent link: https://www.econbiz.de/10011526125
spillovers are substantial, and when goods are not too differentiated. The range of cases for which total surplus under Cournot …
Persistent link: https://www.econbiz.de/10014221104
legal. Using laboratory experiments, we study spillovers from legal cooperation in one market to non-competitive prices in a … different market. Our theoretical framework predicts that such cooperation spillovers are most likely to occur for intermediate … treatments suggest that commitment and multimarket contact are necessary for cooperation spillovers to emerge. …
Persistent link: https://www.econbiz.de/10015209787
Data-driven AI pricing algorithms in on-line markets collect consumer information and use it in their pricing technologies. In the simplest symmetric Hotelling's model such technologies reduce prices and profits. We extend Hotelling's model with vertically differentiated products, cost...
Persistent link: https://www.econbiz.de/10013356476
We examine recent claims that a particular Q-learning algorithm used by competitors 'autonomously' and systematically learns to collude, resulting in supracompetitive prices and extra profits for the firms sustained by collusive equilibria. A detailed analysis of the inner workings of this...
Persistent link: https://www.econbiz.de/10013427594
We propose a tractable method for estimation of a simultaneous search model for differentiated products that allows for observed and unobserved heterogeneity in both preferences and search costs. We show that for type I extreme value distributed search costs, expressions for search and purchase...
Persistent link: https://www.econbiz.de/10014321788
An entrant and an incumbent engage in an investment portfolio problem where each chooses how to allocate its research funds across a rival market, where they compete with one another, and a non-rival market, where they do not interact. Allowing for acquisitions distorts both players' incentives...
Persistent link: https://www.econbiz.de/10014469445