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- W2981036749 abstract "Purpose – This paper analyzes how Research and Development (R&D) cartelization and Research Joint Ventures (RJV) affect firms that engage in Cournot competition in their product market using a model in which the Home and Foreign firm produce differentiated products and export their total output to a third country’s market. Design/Methodology – In a two-stage game, research expenditures incurred in the first stage improve product quality and are subject to various degrees of spillovers. We consider four different scenarios. Findings – In a symmetric equilibrium we observe the following: (i) an RJV that cooperates in RD (ii) RJV cartelization yields the highest product quality, output, and consumer surplus in the third country; however, the lowest is produced by RD and (iii) each firm’s profit is at its minimum in R&D competition and its maximum in RJV cartelization. Furthermore, if spillovers are strong, the profit of each firm in R&D cartelization is greater than that in RJV competition, and vice versa. Originality/Value – By analyzing product innovation in international markets, we can find similarities and differences between process R&D and product R&D in international markets." @default.
- W2981036749 created "2019-10-25" @default.
- W2981036749 creator A5054812380 @default.
- W2981036749 date "2019-04-20" @default.
- W2981036749 modified "2023-09-22" @default.
- W2981036749 title "Research Joint Ventures and Cartels in International Product R&D" @default.
- W2981036749 hasPublicationYear "2019" @default.
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