Cooperative and Noncooperative R&D in an Oligopoly with Spillovers

摘要: This paper examines the positive and normative effects of cooperative R&D--whereby member firms commit themselves to joint profit-maximizing level R&D in a "precompetitive stage" but remain fierce competitors product market--vis-a-vis noncooperative R&D, socially first-best second-best R&D. In presence sufficiently large spillovers, neither nor equilibria achieve even levels. absence spillover effects, however, while remains insufficient, may overshoot first- levels Copyright 1992 by American Economic Association.