Can Rivalry in R&D be Harmful Under Supply Function Competition?

IF 1.9 Q3 BUSINESS
Ismail Saglam
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引用次数: 1

Abstract

Abstract We consider a duopoly with cost asymmetry and demand uncertainty and show that rivalry in (process) R&D can be extremely harmful to both firms even in the presence of spillovers if the firms produce under supply function competition. However, if they produce under Cournot competition, firms can earn higher profits in the presence of R&D rivalry than what they could earn when they (mutually) invested in no R&D. We also show that R&D rivalry always works to widen the efficiency gap between the firms under Cournot competition, and also under supply function competition if R&D spillovers are present. On the other hand, consumers’ welfare is affected by R&D rivalry only under supply function competition. Under this competition, consumers always prefer the presence of R&D rivalry with or without spillovers to the absence of R&D rivalry; however, they obtain their highest surplus under R&D rivalry when there are no R&D spillovers.
供给函数竞争下研发竞争是否有害?
摘要本文研究了具有成本不对称和需求不确定性的双寡头垄断,并证明了即使在存在溢出效应的情况下,如果企业在供给函数竞争下进行生产,在(过程)研发中的竞争对两家企业都是极其有害的。然而,如果企业在古诺竞争下进行生产,那么它们在存在研发竞争的情况下获得的利润要高于(相互)不投资研发时的利润。研究还表明,在古诺竞争和供给函数竞争下,研发竞争总是会扩大企业之间的效率差距。另一方面,只有在供给函数竞争下,研发竞争才会影响消费者福利。在这种竞争下,消费者总是倾向于存在有溢出效应或没有溢出效应的研发竞争,而不是不存在研发竞争;而在没有研发溢出的竞争条件下,它们的盈余最高。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
2.60
自引率
8.30%
发文量
9
期刊介绍: International Journal of the Economics of Business presents original, peer reviewed research in economics that is clearly applicable to business or related public policy problems or issues. The term "business" is used in its widest sense to encompass both public and private sector—governmental, private non-profit and cooperative organizations, as well as profit-seeking enterprises. International Journal of the Economics of Business carries papers relating to three main spheres: The organization—to analyse and aid decision making and the internal organization of the business; The industry—to analyse how businesses interact and evolve within and across industries.
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