Sequencing R&D decisions in a two-period duopoly with spillovers

B-Tier
Journal: Economic Theory
Year: 2000
Volume: 15
Issue: 2
Pages: 297-317

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We compare simultaneous versus sequential moves in R&D decisions within an asymmetric R&D/Cournot model with linear demand (for differentiated products), general R&D costs, and spillovers. Simultaneous play and sequential play (with and without a specified leader) can emerge as appropriate formulations, depending on the ratios of spillover rate over demand cross-slope, but not on R&D efficiency. When at least one ratio is above 1/2, a sequential solution mitigates competition and leads to higher profits for each firm, and to higher social welfare. When uniquely specified, the stronger firm emerges as the R&D first-mover.

Technical Details

RePEc Handle
repec:spr:joecth:v:15:y:2000:i:2:p:297-317
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24