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We examine whether cooperation in R&D leads to product market collusion. Suppose that firms engage in a stochastic R … symmetries, thereby facilitating collusion. Sharing an efficient technology also increases industry profit, which contributes to … the collusion stability but also raises social welfare. Interestingly, a welfare improvement is less likely if innovation …
Persistent link: https://www.econbiz.de/10010332459
Two suppliers of a homogenous good know that, in the second period, they will be able to collude. Gains from collusion … innovation. Innovation changes the status quo pay-off, and thereby affects the distribution of the gains from collusion. The …
Persistent link: https://www.econbiz.de/10010264811
Persistent link: https://www.econbiz.de/10013003617
Persistent link: https://www.econbiz.de/10013012564
Two suppliers of a homogenous good know that, in the second period, they will be able to collude. Gains from collusion … innovation. Innovation changes the status quo pay-off, and thereby affects the distribution of the gains from collusion. The …
Persistent link: https://www.econbiz.de/10014050117
Recent econometric studies only emphasize the role of long-term demand expectations and technological capability. They neglect the impact of buyer market structure on innovative efforts of input suppliers. This paper deals with the effects of supplier and buyer market concentration, and...
Persistent link: https://www.econbiz.de/10010291738
Based on a sample of German innovating firms that contains information on formal and informal innovation cooperation between customers and suppliers, we state that firms perceive informal cooperation as being more important than formal cooperation modes. We then investigate the determinants of...
Persistent link: https://www.econbiz.de/10010297327
This paper analyzes the impact of network externalities on R&D competition between an incumbent and a potential entrant. The analysis shows that the incumbent always invests more than the entrant in the development of higher quality network goods. However, the incumbent exhibits a too low level...
Persistent link: https://www.econbiz.de/10010297865
This paper studies the incentives to undertake uncertain R&D initiatives in a dynamic duopoly network industry. It is shown that network externalities positively affect the incentives to invest in R&D. In the model, competition resembles a preemption race and, therefore, market performance...
Persistent link: https://www.econbiz.de/10010297866
We develop a model of R&D competition between an incumbent and a potential entrant with network externalities and durable goods. We show that the threat of entry eliminates the commitment problem that an incumbent may face in its R&D decision due to the goods? durability. Moreover, a potential...
Persistent link: https://www.econbiz.de/10010297985