Download This PaperR&D Cooperation with Unit-Elastic Demand
10 Pages Posted: 27 Apr 2009
Abstract
The present paper shows that R&D cooperation leads to the monopoly outcome in terms of price and quantity if demand is unit-elastic. If the demand function exhibits an upper bound for the willingness to pay, R&D cooperation is inferior to a scenario in which firms cooperate both in their R&D and their output decision.
Suggested Citation: Suggested Citation
Götz, Georg and Hammerschmidt, Anna, R&D Cooperation with Unit-Elastic Demand. Bulletin of Economic Research, Vol. 61, Issue 2, pp. 179-188, April 2009, Available at SSRN: https://ssrn.com/abstract=1375882 or http://dx.doi.org/10.1111/j.1467-8586.2008.00292.x
Anna Hammerschmidt
Vienna University of Economics and Business
Welthandelsplatz 1
Vienna, Wien 1020
Austria
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