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We develop a model to rationalize and examine so-called "research bubbles", i.e. research activities based on overoptimistic beliefs about the impact of this research on the economy. Research bubbles occur when researchers selfselect into research activities and the government aggregates the...
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We present a new approach to endogenizing technological spillovers. Firms choose continuous levels of a cost …-standing debate on the effects of the mode of competition on innovation incentives. We show that incentives to acquire spillovers are … stronger and incentives to prevent spillovers are weaker under quantity competition than under price competition. As a result …
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