Government subsidies for R&D are intended to promote projects with high returns to society but too little private … a simple signaling model with different types of R&D projects to capture this phenomenon. In a setup where the subsidy …

This paper examines entry deterrence and signaling when an incumbent firm experiences capacity constraints. Our results … transmitted to the entrant. If, in contrast, both types of incumbent face similar expansion costs, subsidies that reduce expansion …, our results demonstrate that if subsidies are very generous entry patterns remain unaffected, suggesting a potential …

Government subsidies for R&D are intended to promote projects with high returns to society but too little private … a simple signaling model with different types of R&D projects to capture this phenomenon. In a setup where the subsidy …