upstream firms set prices, the complete network that includes all firms emerges in equilibrium. In contrast, when upstream … firms set quantities, the complete network will arise but only if within-network R&D spillovers are sufficiently low, while … if R&D spillovers are sufficiently high, a partial network arises. Interestingly, when upstream firms set prices, the …

&D network formation. Within the context of a three-firm industry, a central union that sets a uniform wage is shown to induce a … partial R&D network that includes two firms but excludes the third. In contrast, we find that, under less centralized union …