z-logo
Premium
Quality–Price Competition and Product R&D Investment Policies in Developing and Developed Countries
Author(s) -
Ishii Yasunori
Publication year - 2014
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.12076
Subject(s) - subsidy , competition (biology) , product (mathematics) , developing country , investment (military) , economics , quality (philosophy) , bertrand competition , international economics , microeconomics , industrial organization , business , market economy , cournot competition , oligopoly , economic growth , epistemology , politics , political science , law , biology , ecology , philosophy , geometry , mathematics
This study establishes a third‐country trade model where firms from developing and developed countries invest into product R&D under their governments' subsidisation policies to analyse firms' quality–price choices and governments' optimal product R&D investment policies. We show that a rise in the developing (developed) country's product R&D subsidy makes firms' quality–price competition more (less) intense and that the governments' optimal product R&D policies, depending on the features of their quality and demand functions, can both be subsidies even under Bertrand price competition, contrary to the findings of previous studies.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here