2010•Journal of Shandong University of TechnologyRequires access

Horizontal R&D cooperation and price competition in duopoly market with differential production

Sun Shu-lei

Abstract

A three-stage model with differential product and innovation spillovers was constructed for two firms in duopoly market based on cost reducing innovation or demand creating innovation.Through analysis of the equilibrium of the model,behavior character of product pricing,RD and positioning of duopoly in cooperative RD or non-cooperative RD is disclosed.It is found that two kinds of innovation have identical economic effect under price competition with differential product.This paper also claims that RD game of duopoly in essence is a prison game,and RD level in cooperation will be zero.

About this research paper

What this paper is about

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Duopoly, Differential game, Competition (biology), Microeconomics, Economics, Differential (mechanical device), Product (mathematics), Production (economics)