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- Title
R&D COOPERATION AND COLLUSION: THE CASE OF JOINT LABS.
- Authors
CABON-DHERSIN, MARIE-LAURE
- Abstract
In the standard two-stage framework of R&D/product market competition, the present note compares the performance of full cooperation (firms conduct R&D in a joint lab and collude in the product market) and full competition (firms compete in R&D as well as in the product market). The paper shows that (i) full cooperation leads to better results in terms of R&D efforts compared with non-cooperation; (ii) collusion at the production stage may increase both producers' and consumers' surplus especially when the degree of spillovers is not too high and the products are not homogeneous; (iii) the gains in terms of social welfare from full cooperation increase when the efficiency of R&D decreases.
- Subjects
ECONOMIC competition; MARKET share; TARGET marketing; PRICE fixing; SURPLUS commodities; SOCIAL services; PUBLIC welfare; COOPERATION; COMPETITOR orientation; COMPETITIVE advantage in business; PRODUCT usage segmentation
- Publication
Manchester School (1463-6786), 2008, Vol 76, Issue 4, p424
- ISSN
1463-6786
- Publication type
Article
- DOI
10.1111/j.1467-9957.2008.01067.x