Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Endogenous product differentiation and product R&D in spatial Cournot competition
Abstract We investigate in a spatial Cournot competition setting how much product research and development (R&D) investment firms make in order to differentiate their goods. The model features a location competition in the first stage, R&D competition in the second stage, and Cournot competition in the third stage. There are two differentiation methods in the model—spatial differentiation affecting the firm costs, and differentiation in the demand function affecting the demand levels. We find that comparing to the setting with no spatial connotation, the firms tend to invest less in product R&D. We also consider welfare implications. Although the firms employ maximum differentiation in equilibrium, there are cases in which welfare can be improved if the firms are to locate closer to each other.
Endogenous product differentiation and product R&D in spatial Cournot competition
Abstract We investigate in a spatial Cournot competition setting how much product research and development (R&D) investment firms make in order to differentiate their goods. The model features a location competition in the first stage, R&D competition in the second stage, and Cournot competition in the third stage. There are two differentiation methods in the model—spatial differentiation affecting the firm costs, and differentiation in the demand function affecting the demand levels. We find that comparing to the setting with no spatial connotation, the firms tend to invest less in product R&D. We also consider welfare implications. Although the firms employ maximum differentiation in equilibrium, there are cases in which welfare can be improved if the firms are to locate closer to each other.
Endogenous product differentiation and product R&D in spatial Cournot competition
Ebina, Takeshi (Autor:in) / Shimizu, Daisuke (Autor:in)
2011
Aufsatz (Zeitschrift)
Englisch
Endogenous product differentiation and product R&D in spatial Cournot competition
| Online Contents | 2011
Dispersion equilibria in spatial Cournot competition
| Online Contents | 2014
Dispersion equilibria in spatial Cournot competition
| Online Contents | 2014
Cournot competition in spatial markets: Some further results
| Online Contents | 2003
Spatial Cournot competition in two intersecting circular markets
| Online Contents | 2019