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Katz (1986) - An Analysis of Cooperative Research and Development (view source)
Revision as of 15:54, 7 December 2010
, 15:54, 7 December 2010no edit summary
*The agreed valus of <math>s\;</math> (the cost sharing parameter inside the partnership)
We know that <math>\phi=\overline{\phi}\;</math>, but the sign of <math>z^n - z^0\;</math> depends on <math>\rho(c^0)\;</math>, and <math>s^n \;</math> depends on <math>\rho(c^n)\;</math>.
*Raising <math>\delta\;</math> is increasing the product market competition
*Raising <math>\epsilon\;</math> makes the equilibrium price less responsive to changes in costs
*Raising either <math>\delta\;</math> or <math>\epsilionepsilon\;</math> raises <math>\rho\;</math>, which in turn expands the set of parameters over which industrywide cooperation raises effective R&D.
There are further specific examples in the paper, including Cournot competition.
