Munich Personal RePEc Archive

R&D Output Sharing in a Mixed Duopoly and Incentive Subsidy Policy

Lee, Sang-Ho and Muminov, Timur (2017): R&D Output Sharing in a Mixed Duopoly and Incentive Subsidy Policy.

[img]
Preview
PDF
MPRA_paper_81732.pdf

Download (124kB) | Preview

Abstract

This study investigates the incentives for R&D output sharing in a mixed duopoly and shows that public firm chooses full sharing of their R&D output, whereas private firm enjoys free-riding. We then devise an agreement-based incentive R&D subsidy scheme, which can internalize R&D spillovers and induce both firms to earn higher payoffs through full sharing of their R&D output. We also show that an R&D subsidy policy is welfare-superior to a production subsidy policy.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.