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With one-way spillovers, the standard symmetric two-period R&D model leads to an asymmetric equilibrium only, with endogenous innovator and imitator. We show how R&D decisions and measures of firm heterogeneity - market shares, R&D shares, and profits - depend on spillovers and on R&D costs....
Persistent link: https://www.econbiz.de/10005543436
For Bertrand duopoly with linear costs, we establish via a single (counter-)example that: (i) A new monotone transformation of the firms' profit functions may lead to the supermodularity of transformed profits when the standard log and identity transformations both fail to do so, and (ii)...
Persistent link: https://www.econbiz.de/10005370852
This paper reconsiders the well-known comparison of equilibrium entry levels into a Cournot industry under free entry …
Persistent link: https://www.econbiz.de/10011076676
A two-period symmetric Cournot duopoly with linear demand and costs is analyzed under linear (or more general) returns …
Persistent link: https://www.econbiz.de/10005581979
In the framework of symmetric Cournot oligopoly, this paper provides two minimal sets of assumptions on the demand and … interest, new insight into existence of Cournot equilibrium is developed. …
Persistent link: https://www.econbiz.de/10005749400
This note relates to Topkis (1995). We establish via counterexample that:(i) A new monotone transformation of the firms' profit functions may lead to cardinal complementarity when the standard log and identity transformations both fail, and (ii) Topkis's notion of critical sufficient condition...
Persistent link: https://www.econbiz.de/10005749417
A two period R&D symmetric Cournot duopoly game with linear demand and costs is analysed under linear (or more general …
Persistent link: https://www.econbiz.de/10005749421
An infinite-horizon, stochastic model of entry and exit with sunk costs and imperfect competition is constructed. Simple examples provide insights into: (1) the relationship between sunk costs and industry concentration, (2) entry when current profits are negative, and (3) the relationship...
Persistent link: https://www.econbiz.de/10005749434
We provide an extensive comparison of the R&D models of d'Aspremont-Jacquemin (1988) and Kamien-Muller-Zang (1992), exposing full or partial conflict in key conclusions and policy prescriptions. Using three separate formal and/or intuitive criteria, we argue that the first model is invalid for...
Persistent link: https://www.econbiz.de/10005749435
) of exogenously changing the number of firms in a Cournot framework. This amounts to an in-depth exploration of the well …
Persistent link: https://www.econbiz.de/10005232965