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Endogenous research and development spillovers and asymmetric firms
Author(s) -
PoyagoTheotoky Joanna,
Talerngsri Teerasuwannajak Khemarat
Publication year - 2020
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3174
Subject(s) - duopoly , information asymmetry , profitability index , productivity , industrial organization , business , economics , microeconomics , asymmetry , finance , cournot competition , macroeconomics , physics , quantum mechanics
We examine an asymmetric research and development (R&D) duopoly, where firms differ in their research and development productivity, one firm being technologically advanced. We find that both firms can benefit and increase their profitability by entering into a voluntary information sharing agreement despite their asymmetry and highlight the conditions needed for such an agreement to take place.