R&D Cooperation with Unit-Elastic Demand

10 Pages Posted: 27 Apr 2009

See all articles by Georg Götz

Georg Götz

University of Giessen - Department of Economics

Anna Hammerschmidt

Vienna University of Economics and Business

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

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

Georg Götz (Contact Author)

University of Giessen - Department of Economics ( email )

Licher Str. 62
Giessen, Hessen D-35394
Germany
+49 641 99 22050 (Phone)
+49 641 99 19867 (Fax)

HOME PAGE: http://wiwi.uni-giessen.de/home/goetz/

Anna Hammerschmidt

Vienna University of Economics and Business

Welthandelsplatz 1
Vienna, Wien 1020
Austria

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