This paper presents a dynamic model of a competitive R&D and production duopoly subject to knowledge spillovers. Two asymmetric firms operate for a limited period of time and dispose of their knowledge capital in the end. Both firms and the social planner prefer the R&D-cooperative strategy over...

The emergence and survival of cooperation is one of the hardest problems still open in science. Several factors such as the existence of punishment, repeated interactions, topological effects and the formation of prestige may all contribute to explain the counter-intuitive prevalence of...

This paper studies the payoff structure of stable cooperation structures in link formation games. Players choose non-cooperatively with whom they want to form a link, and the payoffs are given by the Myerson value of the cooperation structure obtained. We characterize the class of TU-games that...

It is shown that asymmetry in Ramp;D efficiency between firms is an important factor determining feasibility of the preemption and attrition scenarios in competitive Ramp;D with time to build. Scenarios of attrition and preemption games are most likely to occur when competitors have similar...

This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry threat. The entry threat stimulates the incumbent to...

We construct an asymmetric duopolistic R&D and production behavior model subject to knowledge spillovers. This model is an extension to the symmetric model of d'Aspremont and Jacquemin (A&J (1988)) and aims to determine the cooperative and non-cooperative R&D strategies for two agents of...

In this paper we test the relation between cognitive distance and innovation performance of firms engaged in technology-based alliances. The key finding is that the hypothesis of an inverted U-shaped effect of cognitive distance on innovation performance of firms is confirmed. Moreover, as...

We test the theoretical prediction that inter-firm spillovers must necessarily be large for the profit differential between cooperation and non-cooperation in R and D to be monotone increasing with them. By using the French data from the 2002 Community Innovation Survey, we find that spillovers...

Economic interactions often take place in open communities, in which agents are free to leave a community to join a more preferred one. Tiebout (1956) conjectured that “voting with feet” might generate considerable efficiency gains since individuals with different preferences sort themselves...