Logo
Munich Personal RePEc Archive

Cooperative vs. non-cooperative R&D incentives under incomplete information

Kabiraj, Tarun and Chattopadhyay, Srobonti (2014): Cooperative vs. non-cooperative R&D incentives under incomplete information.

[thumbnail of MPRA_paper_59259.pdf]
Preview
PDF
MPRA_paper_59259.pdf

Download (179kB) | Preview

Abstract

This paper studies incentives for cooperative research vis-à-vis non-cooperative research in an incomplete information framework. We show that with quantity competition under asymmetric information, the expected payoff from non-cooperative research goes down compared to the case of symmetric information; hence RJV incentives of the firms are larger under asymmetric information. In either case, however, the larger is the size of the cost-reducing innovation the lower is the incentive for cooperative research. Finally in our model, incomplete information does not affect the consumers’ welfare, but the firms become worse off.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.