We study how network externalities affect research and development (R&D) investments by a non-cooperative duopoly that offers compatible products. We find that multiple R&D equilibria may arise when network externalities are non linear in the number of consumers. The lowest R&D equilibrium...

We study how network externalities affect research and development (R&D) investments by a non-cooperative duopoly that offers compatible products. We find that multiple R&D equilibria may arise when network externalities are non linear in the number of consumers. The lowest R&D equilibrium...

This article distinguishes two R&D externalities: technical and competitive. We show that the main results in the literature are obtained by comparing the magnitude of those two externalities if the inverse demand function is linear. Moreover, we conclude that in cooperative R&D agreements,...