Besley, Timothy; Suzumura, Kotaro - In: International Economic Review 33 (1992) 2, pp. 413-31
This paper establishes comparative statics results for an oligopoly model with strategic commitment. Firms compete in two stages. In the first stage, firms decide on strategic cost-reducing R&D investment, whereas they choose output in the second stage. Taking an excise tax/subsidy as a shift...