Beat 'em or join 'em? : export subsidies versus international research joint ventures in oligopolistic markets

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Title: Beat 'em or join 'em? : export subsidies versus international research joint ventures in oligopolistic markets
Authors: Neary, J. PeterO'Sullivan, Paul
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Date: 11-May-1998
Online since: 2011-07-25T14:22:23Z
Abstract: This paper compares adversarial with cooperative industrial and trade policies in a dynamic oligopoly game in which a home and foreign firm compete in R&D and output and, because of spillovers, each firm benefits from the other's R&D. When the government can commit to an export subsidy, such a policy raises welfare relative to cooperation, except when R&D is highly effective and spillovers are near-complete. Without commitment, however, subsidisation may yield welfare levels much lower than cooperation and lower even than free trade, though qualifications to the dangers from no commitment are noted.
Funding Details: Not applicable
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP98/10
Keywords: Research and developmentR&D spilloversCooperative agreementsResearch Joint VenturesStrategic trade policyExport subsidiesCommitmentDynamic consistency
Subject LCSH: Research, Industrial--Mathematical models
Commercial policy--Mathematical models
Export subsidies--Mathematical models
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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